Under Construction

Transkript

Under Construction

Under
Construction
Annual Report 2009
Going forward... Toward the best.
Prof. Dr. İhsan Doğramacı
20 Company Profile and Shareholding Structure
22 Vision, Mission and Corporate Values
24 Construction Sector in Turkey and around the World
30 Bilkent Holding in Brief
34 Tepe İnşaat in Brief
40 Financial Highlights
46 Message from the Management
50 Board of Directors and Board of Auditors
50 Senior Management
52 Milestones
64 Subsidiaries and Affiliates
69 2009 Operations
Domestic Projects
International Projects
Investment Projects
94 TAV Havalimanları (TAV Airports)
110 TAV İnşaat (TAV Construction)
114 Future Projects and Strategic Planning
116 Human Resources
120 Occupational Safety, Environment and Quality Policy
122 In Remembrance of Prof. Dr. İhsan Doğramacı
136 Bilkent University
143 Consolidated Financial Statements and
Auditors’ Report as of December 31, 2009
Please do not read
this report without
wearing a helmet
Forum Kayseri
Shopping Center
Commencement Date: December 14, 2009
Contract Value: € 24,600,000
Delivery Date: November 30, 2010
Construction Area: 57,000 square meters
Client: Multi Turkmall Onyediemlak
Yat. İnş. Tic. A.Ş.
Bilkent University
2010 Projects
Commencement Date: January 7, 2010
Contract Value: TL 11,300,000
Delivery Date: December 31, 2010
Construction Area: Bilkent Campus
Client: Bilkent University Rectorate
Meteksan Concept Building
Commencement Date: October 1, 2009
Total Construction Area:
11,760 square meters
Delivery Date: July 2, 2010
Client: Bilkent University Rectorate
Akdeniz University
II. Section Servicing
Construction Project
Commencement Date: August 2, 2002
Client: Akdeniz University Rectorate
Hacettepe University
Hospitals Retrofit and
Large Scale Renovation
Construction
Commencement Date: October 9, 2009
Client: Hacettepe University Directorate of
Strategy Development
Narcity Housing Project
Commencement Date: January 2006
Contract Value: US$ 300,000,000
Delivery Date: Plots C, D and E opened
for residential occupancy in 2007, plots F
and G opened for residential occupancy
in mid-2008. Plot A will be delivered at the
end of 2010; plot B will be delivered at the
end of 2011.
Tepe Prime Project
Commencement Date: October 2008
Delivery Date: October 2011
Land Owner: Turkish Cement
Manufacturers’ Association
Sulaimaniya University, Iraq
Contract Date: January 17, 2005
Client: Republic of Iraq, Ministry of Higher
Education and Scientific Research
İhsan Doğramacı
Erbil Foundation Schools
Construction, Iraq
Contract Date: July 15, 2008
Delivery Date: August 31, 2011
Client: İhsan Doğramacı Erbil Foundation
20
Company Profile and
Shareholding Structure
Since 1969, Tepe İnşaat has been active in the construction sector, one
of the most important pillars of Turkish economic development. Following 40 years in this gigantic and challenging sector, the Company has
proudly assumed leadership in its field with a consistent list of achievements since day one. Responding to rapidly-evolving demands of
the modern world with equally rapid solutions, Tepe İnşaat considers
the “peak” merely as the point of departure for development, success
and service rather than a target. That is why Tepe İnşaat has constantly
strived to go “to the leading edge, toward being the best” even after 40
years at the peak of its sector.
As one of the most powerful and effective architects of urban transformation, Tepe İnşaat has played an important role in the development of Turkey by undertaking numerous large-scale projects such as hospitals, airport terminals, pipelines, power plants, business and shopping centers.
An important source of pride for Tepe İnşaat has been its contribution to
social and economic development, based on Prof. Dr. İhsan Doğramacı’s
philosophy to “be the leading edge, toward being the best.”
Tepe İnşaat meets the demands of the day in its field of activity with great
care and thoroughness. Striving constantly to enhance its status with
the force provided by its employees’ efforts, support and know how, the
Company considers it as a national responsibility to carry its experience,
accumulated knowledge and vision beyond the region.
Having always
been at the peak
of the construction
sector through
40 years filled
with successive
achievements, Tepe
İnşaat constantly
strives to go “to the
leading edge, toward
being the best.”
Tepe İnşaat
Annual Report 2009
21
Introduction
ˊ ˊ Company Profile and Shareholding Structure
Share Share of
Number of
Shareholders
Class
Capital
Shares
Share
%
Bilkent Holding A.Ş.
A
1
1
0.00000
B
480,839,812
480,839,812
85.86425
Tepe Emlak Yat. İnş. A.Ş.
B
74,666,732
74,666,732
13.33335
Tepe Savunma ve Güv. Sis. A.Ş.
B
4,072,482
4,072,482
0.72723
Tepe Mobilya Sanayi ve Tic. A.Ş.
B
249,187
249,187
0.04450
Tepe Home Mob. Dek. A.Ş.
B
154,552
154,552
0.02760
Meteksan Matbaacılık A.Ş.
B
17,234
17,234
0.00308
As of December 31, 2009 Tepe İnşaat’s registered capital is TL 560 million.
Shareholding
Structure (%)
0.8%
Other
13.3%
Tepe Emlak
Yat. İnş. A.Ş.
85.9%
Bilkent
Holding A.Ş.
Note: As a result of the Ordinary General Assembly Meeting dated April 14, 2010, Tepe İnşaat Sanayi A.Ş.
capital was raised to TL 625,000,000.
22
Vision, Mission and
Corporate Values
Tepe İnşaat will continue
to create added value to
Bilkent University and Turkey
with its experience and
know-how, highly qualified
human resources, state-of-theart technology and a service
philosophy that prioritizes
customer satisfaction, as it has
for the last 40 years.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Vision, Mission and Corporate Values
23
Vision
To engage in manufacturing at world standards, adopting the principle
of uncompromised quality at every stage and all details of each project.
To conscientiously adopt all contemporary requirements in the employees’ areas of expertise utilizing their strength, support and knowledge,
with the awareness that employees are a company’s most valuable asset
and to further advance the Company’s market position with sustainable
growth perspectives.
Mission
To generate resources for Bilkent University that allows it to develop and
grow.
Corporate Values
Tepe İnşaat is:
Focused on customer satisfaction
Constantly monitors evolving customer expectations to achieve continuous customer satisfaction.
Dedicated to ethical values and the law
Strives for competitiveness, productivity and profitability and works to
provide the best service and product quality in its field; it is totally dedicated to the laws and ethical values.
Aware of its responsibilities
Is cognizant of its national responsibility and major corporate goals to
expand its experience, know-how and vision beyond the region.
24
Construction Sector in Turkey and
around the World
The construction sector plays
a critical role in the economic
structure, owing to its direct
link to the production of
goods and services, its
intensive use of the labor force
and its contribution to social
and economic welfare.
Tepe İnşaat
Annual Report 2009
The construction
sector is one of
the most important
areas of activity in
Turkey capable of
mobilizing over 200
subsectors.
Introduction
ˊ ˊ Construction Sector in Turkey and around the World
25
The construction sector is closely tied to overall economic growth and
development. In periods of rapid economic growth and development, the
construction sector also expands. The sector plays a critical role in the
economic structure, owing to its direct link to the production of goods
and services and its intensive use of the labor force; it also contributes
to social and economic welfare. The added value and employment generated by the sector are the driving forces behind national economic
development.
With its ample experience and potential in national and international arenas, the Turkish construction sector is one of the most important areas
of activity in Turkey and is able to mobilize over 200 subsectors. Based
on large scale capital investments, the construction sector has a direct
influence on hundreds of professions significantly affecting the process
of employment and production.
Based on large
scale capital
investments,
the construction
sector has
a direct influence
on hundreds of
professions; it
represents
a significant effect
on employment
and production.
Following a period of rapid growth between 2001 and 2007, the world
economy began slipping into a deep crisis in 2008. In order to diminish
the impact of this economic crisis and ameliorate troubled economic
dynamics, various measures were taken and a new post-crisis period
began.
The economic crisis that had its start in 2008 included a financial crisis
as well as a recession; it appears to be deeper and longer lasting than
the crises experienced in 1975, 1982 and 1991. The financial crisis, the
first component of the economic crisis, erupted in developed countries with mortgage credit repayment problems. Later, as other assets in
their balance sheets decreased in value, banks lost significant parts of
their capital and consequently their payment capacity. The financial crisis
quickly acquired a systematic character; due to the interrelatedness of
their balance sheets, all banks started to experience losses in capital and
payment capacity.
26
Recession, the second component of the economic crisis, signifies a
dwindling of national economies’ production of goods and services in
comparison with previous periods. The crisis appeared initially in some
developed economies, with a slowing of growth and even a serious contraction in others. The onset of the recession in developed countries resulted in serious negative repercussions for developing economies.
Starting at the onset of the economic crisis, measures were taken to
minimize these effects in two stages; the first contraction and normalization in 2009 and 2010, followed by a transition to stable growth between
2011 and 2014.
In the new economic period, the real-estate industry is expected to display a more limited expansion than in the growth period. The housing
sector will see demand continue to assert itself independent of economic
events. Between 2009 and 2014, housing demand is estimated at 3.28
million units; however, a slowdown is expected in the economic dynamics that drive growth in the commercial real-estate sector. In particular,
investment decisions for shopping center projects might be delayed. In
the new economic period, financing for commercial real-estate will become limited resulting in higher costs, shorter maturity periods, lower
leverage rates, higher need for shareholders’ equity, risk avoidance and
increasing financing via bank credits.
In the new
economic period,
the real-estate
industry is expected
to limit expansion;
however, housing
demand will
continue to assert
itself independently
of economic events.
Tepe İnşaat
Annual Report 2009
Introduction
27
28
The growth rate of the GDP in current prices - according to fields of economic activity and in basic prices, 2008-2009, TL 1,000
Period/Field of economic
activity
Agriculture, hunting and forestry
1st
2nd
Quarter Quarter
3rd
4th
Quarter Quarter
1st
2nd
3rd
4th
2008 Quarter Quarter Quarter Quarter
2009
19.8
16.3
12.4
8.8
13.1
0.1
10.1
8.5
9.1
8.0
(14.2)
3.5
(14.8)
(17.3)
(13.1)
18.4
21.0
38.9
37.5
29.7
Mining and quarrying
22.9
27.4
30.8
27.8
27.8
7.9
(0.8)
5.2
10.4
5.8
Manufacturing
11.5
14.6
9.4
(1.9)
8.4
(15.8)
(13.9)
(6.4)
9.0
(7.2)
Electricity, gas, steam and hot
water generation and distribution
11.9
25.8
27.7
45.5
28.0
43.2
16.0
(0.6)
(7.0)
10.5
Construction
12.9
21.6
2.3
(0.2)
8.9
(12.5)
(23.4)
(23.6)
(11.3)
(18.1)
Wholesale and retail trade
16.7
22.9
14.7
(2.3)
12.8
(20.3)
(20.6)
(10.8)
6.1
(11.8)
Hotels and restaurants
11.1
13.3
5.6
16.0
10.3
15.5
11.2
12.8
13.0
13.0
Transports, storage and
communications
15.3
19.8
17.0
7.9
14.8
(5.9)
(11.1)
(8.4)
1.9
(5.9)
Activities by financial intermediaries
21.8
17.0
15.3
27.9
20.6
43.0
40.1
38.7
18.0
34.1
House ownership
17.8
16.4
16.2
15.9
16.5
16.0
15.4
12.4
9.9
13.4
Real-estate, leasing and
business activities
16.5
20.5
20.0
14.7
17.5
7.9
7.7
12.1
16.2
11.1
Public management and defense,
obligatory social insurance
15.3
9.6
9.5
7.7
10.4
16.8
13.3
12.7
11.2
13.5
Education
12.2
10.6
15.6
14.6
13.2
13.2
17.3
11.9
14.2
14.1
Health and social services
14.4
12.3
11.0
10.1
12.0
3.1
5.4
7.0
7.2
5.6
Other social and personal service
activities
13.2
10.1
9.6
5.3
9.4
(0.7)
1.2
4.0
7.5
3.1
Households with domestic
employees
14.6
16.6
14.7
11.5
14.1
4.9
5.0
9.8
14.0
8.4
Sectors total
15.0
17.6
13.3
7.8
13.3
(0.5)
(2.7)
1.0
7.4
1.3
Indirectly measured financial
intermediation services
19.1
9.1
1.1
33.0
15.5
47.2
53.0
62.6
24.5
45.4
Taxes-subsidies
13.0
17.8
8.6
(2.9)
9.0
(11.9)
(6.4)
0.3
15.8
(1.0)
GDP (in buyer’s prices)
14.7
17.8
13.0
6.1
12.7
(2.7)
(4.0)
0.1
8.0
0.4
Fishing
Tepe İnşaat
Annual Report 2009
Introduction
29
30
Bilkent Holding in Brief
With 40 years experience and
over 40 companies under
its umbrella, Bilkent Holding
has a very wide array of
activities ranging from
construction to information and
communication technology,
from various branches within
the manufacturing sector to
the investment and service
industries.
Tepe İnşaat
Annual Report 2009
Bilkent Holding’s
manufacturing
investments focus
on furniture,
kitchens, concrete
panels as well as
paper and cardboard
manufacturing.
Introduction
ˊ ˊ Bilkent Holding in Brief
31
With the establishment of Dilek İnşaat in 1969, the Holding took its first
steps toward success. Bilkent Holding was founded in 1987 and soon
became one of Turkey’s most prestigious corporations. Today, the corporation has more than 40 companies consolidated under its umbrella.
Immediately following the establishment of Dilek İnşaat, Tepe Ağaç Metal
ve İnşaat Şirketi became the core for today’s Tepe Mobilya, Tepe Home
and Tepe İnşaat companies. The 40 companies that were established
over the next 40 years formed the rapidly growing and developing Bilkent
family of companies.
The broad-based activities of Bilkent Holding today encompass construction, information and communication technology, various branches
within the manufacturing sector as well as investment and service industries. Bilkent Holding, growing daily in line with the goals set for itself,
belongs to Bilkent University.
In line with its goal
of transforming
Turkish youngsters
into highly qualified
individuals, Bilkent
Holding allocates
resources to the
Bilkent University.
Holding companies operating in the construction industry are justifiably
proud of their contribution to many of the country’s assets; valuable educational facilities, healthcare complexes, hospitals, airport terminals, infrastructure facilities, pipelines, power plants, housing and prefabricated
buildings.
The Group’s manufacturing investments focus on furniture, kitchens,
concrete panels as well as paper and cardboard manufacturing. In addition, with more than twenty factories as well as publishing and state-ofthe-art printing facilities, the Group is involved in manufacturing activities
in many cities throughout the country.
Bilkent Holding also plays a responsible, effective and determining role in
education in Turkey, the country with the youngest population in Europe.
Steering the Turkish economy with strong, large-scale, long-term investments, Bilkent Holding allocates resources to Bilkent University, which
strives to transform Turkish youngsters into highly qualified individuals,
by supporting their personal development.
32
Bilkent Holding Subsidiaries and Affiliates Company
Bilan Bilkent Ankara Tepe Otel İşletmeciliği A.Ş.
Total Capital
Share Capital
(TL) (TL)
Share
(%)
5,500,000
415,556
7.56
Bilbak A.Ş.
50,000
25,520
51.04
Bildes A.Ş.
50,000
25,520
51.04
98.81
50,000
49,406
Bilenerji A.Ş.
Bilen A.Ş.
14,000,000
639,772
4.57
Bilintur A.Ş.
40,000,000
7,000,000
10.91
Bilsigorta A.Ş.
150,000
149,559
99.71
Dilek İnşaat A.Ş.
22,000,000
19,000,000
86.36
Meteksan Matbaacılık ve Tek. San. Tic. A.Ş.
62,526,000
56,415,425
90.23
Meteksan Matbaacılık ve Tek. San. Tic. A.Ş.
62,526,000
1
0.00
Meteksan Uzay Teknolojileri A.Ş.
500,000
5,000
1.00
Optisis İletişim ve Bilgi Teknolojileri A.Ş.
300,000
3,000
1.00
13,500,000
690
0.01
Sports Internatonal Bilkent Fitness ve Spor Merkezleri A.Ş.
Tepe Betopan A.Ş.
Tepe Emlak A.Ş.
20,000,000
502,000
2.51
160,000,000
36,855,654
23.03
20.05
Tepe Home A.Ş.
61,000,000
12,227,549
Tepe Home A.Ş.
61,000,000
1
0.00
Tepe İnşaat A.Ş.
560,000,000
480,839,812
85.86
Tepe İnşaat A.Ş.
560,000,000
1
0.00
50,000,000
2,337,964
3.27
4,500,000
1
0.00
13,000,000
2
0.00
Tepe Servis ve Yönetim A.Ş.
50,000
1
0.00
Turkofon A.Ş.
50,000
25,587
51.17
Tepe Mobilya A.Ş.
Tepe Prefabrik İnş. San. Tic. A.Ş.
Tepe Savunma A.Ş.
Tepe İnşaat
Annual Report 2009
Introduction
33
34
Tepe İnşaat in Brief
Tepe İnşaat takes great
pride in the completion of
a wide range of exceptional
projects; vital urban
infrastructure construction,
power plants, airports
-Turkey’s gateway to the
world - shopping centers,
modern residential projects
and healthcare and
educational facilities.
Tepe İnşaat
Annual Report 2009
Since its first
Project, Tepe
İnşaat defined
the “peak” as the
most fundamental
principle that
determines the limits
of its service policy.
Introduction
ˊ ˊ Tepe İnşaat in Brief
35
One of the pioneers and innovators of the Turkish construction industry
with its strong financial structure, vast experience accumulated over the
years and well-respected corporate identity, Tepe İnşaat Sanayi A.Ş.
plays a crucial and indispensable role in the development of Turkey and
is the flagship of Bilkent Holding.
Tepe İnşaat Sanayi A.Ş. commenced operations as a member of the
Tepe Group established in Ankara in 1969 by the Hacettepe University
Foundation. Since the reorganization of the Group in 1987, the Company
has continued working under the roof of Bilkent Holding, a subsidiary of
Bilkent University.
The vital functions assumed by the construction industry, a pillar of development, require targeting the best construction at all times, beginning
with the smallest details. Active in this critically important sector, Tepe
İnşaat always pursues perfection totally aware of the social implications
of its activities. Since its first project, Tepe İnşaat defined the “peak” as
the most fundamental principle that determines the limits of its service
policy. While responding to the modern world’s rapidly changing expectations with the most suitable solutions, the Company has always seen
the “peak” as a point of departure with regard to development, success,
competition and service rather than just a destination.
Since its inception,
Tepe İnşaat has
been a company that
forges ahead with its
mission to transfer
the value and
resources it creates
to the development
and consolidation of
Billkent University.
Tepe İnşaat approaches every project it undertakes with this perspective; working with excellent cooperation and teamwork to ensure that all
contributors feel that they are part of the project.
The construction sector, especially contracting, cannot be defined simply
as the creation of buildings. Contracting, the make-or-break point of a
project, is the actualization of the loyalty and respect for the dream underlying a certain project. In all of the projects it undertakes, Tepe İnşaat
acts with this sensitivity and creates a work environment in which those
who labor for the project become one with the dream that underlies the
project and thus achieving perfect team work.
Since its inception, Tepe İnşaat has assumed the mission of transferring
the value and resources that it generates to further develop and reinforce
Bilkent University, Turkey’s first private university and one of the country’s
leading educational facilities. This mission is the primary element differentiating the Company from others in the industry. Every successful
project completed by Tepe İnşaat provided thousands of young people
with educational opportunities.
36
UKRAINE
MACEDONIA
ALBANIA
TURKEY
TUNISIA
LIBYA
EGYPT
Tepe İnşaat
Annual Report 2009
37
Introduction
RUSSIA
KAZAKHSTAN
GEORGIA
AZERBAIJAN
AFGHANISTAN
IRAQ
SAUDI ARABIA
QATAR
UNITED ARAB EMIRATES
OMAN
38
Tepe İnşaat takes great pride in having completed a wide range of exceptional projects including vital urban infrastructure construction, power plants, airports -Turkey’s gateway to the world- shopping centers,
residential projects that transform the image of Turkey with their contemporary makeup and healthcare and educational facilities. While activating
such important dynamics in Turkish social and economic life, Tepe İnşaat
is also dedicated to its mission of channeling resources into education.
Today Tepe İnşaat enjoys a strong market position with diverse operations ranging from architectural projects to construction, landscaping and
interior design. The factors underlying this position are the Company’s
deeply rooted experience, both domestically and internationally, highlyqualified and skilled staff composed of the sector’s best employees,
state-of-the-art technology, an emphasis on high quality and fast, flexible
service focused on customer satisfaction.
Today Tepe İnşaat
enjoys a strong
market position
with diverse
operations ranging
from architectural
projects to
construction,
landscaping and
interior design.
Considering it a national obligation and responsibility to expand its experience, know-how and vision beyond the borders of Turkey, Tepe İnşaat
has become an important brand in the international arena as well.
Following the completion of a wide range of construction projects amounting to more than US$ 4.4 billion over the past forty years, Tepe İnşaat
also successfully undertakes investment projects that combine land acquisition, financing, project drafting, construction and marketing activities in a well-integrated system.
As it has, over the past four decades, Tepe İnşaat shall continue to utilize
its know-how and experience, highly-qualified human resources and advanced state-of-the-art technology to provide added value to the Bilkent
University and consequently Turkey, based on its service philosophy prioritizing customer satisfaction.
Serving various segments of the industry utilizing its superior expertise
and vast experience, Tepe İnşaat has a service policy that strives to
continuously improve life and expand its own institutional know-how with
each completed project. Tepe İnşaat aims for the highest level of customer satisfaction, considering every person and company that it serves as
an indispensable part of the value chain it creates. The Company forges
ahead to its future goals with confidence.
Considering it as a
national obligation
and responsibility
to expand its
experience, knowhow and vision
beyond the borders
of Turkey, Tepe
İnşaat has become
an important brand
in the international
arena as well.
Tepe İnşaat
Annual Report 2009
Introduction
39
40
Financial Highlights
Balance Sheet Figures (TL thousands)
A- Current Assets
B- Fixed Assets
Total Assets
2008
%
2009
%
480,135
34.98
536,543
38.18
65.02
868,858
61.82
100.00 1,405,400
100.00
892,562
1,372,698
A- Short-term Liabilities
212,236
15.46 214,831
15.29
B- Long-term Liabilities
417,978
30.45
452,179
32.17
54.09
738,391
52.53
100.00 1,405,400
100.00
C- Shareholders’ Equity
Total Liabilities
742,484
1,372,698
Income Statement Figures (TL thousands)
Gross Sales
Sales Discounts (-)
2008
2009
551,188
145,091
(413)
(25)
Net Sales
550,774
145,065
Cost of Sales
431,701 113,115
Gross Profit (Loss) from Sales
119,073
31,951
Operating Expenses
Operating Profit (Loss)
Ordinary Revenue and Income from Other Operations
Ordinary Expense and Loss from Other Operations
Financial Expense
Ordinary Profit (Loss) (5,612)
(4,301)
113,461
27,650
111,509
65,909
(115,184)
(57,204)
(18,413)
(64,893)
91,373
(28,539)
Extraordinary Revenue and Income
17,702
15,229
Extraordinary Expenses and Losses
(124,899)
(34,948)
(15,824)
(48,258)
Profit (Loss) for the Period
Tepe İnşaat
Annual Report 2009
41
Introduction
ˊ ˊ Financial Highlights
Total Assets (TL thousands)
1,405,400
1,372,698
2009
2008
Shareholders’ Equity (TL thousands)
738,391
742,484
2009
2008
Net Sales (TL thousands)
2009
145,065
550,774
2008
Operating Profit (Loss) (TL thousands)
2009
27,650
113,461
2008
Extraordinary Revenue and Income (TL thousands)
2009
2008
15,229
17,702
42
Financial Ratios
2008
2009
Liquidity Ratios
Current Ratio
2.26
2.50
Acid-Test Ratio
2.09
2.44
Cash Ratio
0.19
0.41
Operational Ratios
Receivables Turnover Rate Receivables Collection Period
Current Assets Turnover Rate
Net Working Capital (TL)
6.48
1.27
56.29
287.79
1.15
0.27
267,899,265
321,712,086
Net Working Capital Turnover Rate
2.06
0.45
Tangible Assets Turnover Rate
7.47
2.03
Total Assets Turnover Rate
0.40
0.10
Shareholders’ Equity Turnover Rate
0.74
0.20
Financial Leverage Ratios
Financial Leverage Ratio
0.46
0.47
Financing Ratio
1.18
1.11
Ratio of Shareholders’ Equity to Total Assets
0.54
0.53
Ratio of Short-term Debts to Total Liabilities
0.15
0.15
Ratio of Short-term Debts to Total Debts
0.34
0.32
Ratio of Long-term Debts to Total Liabilities
0.30
0.32
Ratio Analysis in Accordance with the Public Procurement Law
Current Ratio
3.64
3.69
Ratio of Shareholders’ Equity to Total Assets
0.69
0.72
0
0
Ratio of Short-term Financial Liabilities to Total Shareholders’ Equity
Tepe İnşaat
Annual Report 2009
43
Introduction
Current Ratio
2.50
2.26
2009
2008
Acid-Test Ratio
2.44
2009
2.09
2008
Cash Ratio
0.41
2009
0.19
2008
Financing Ratio
1.11
1.18
2009
2008
Total Assets Turnover Rate
2009
2008
0.10
0.40
46
Message from the Management
Despite economic contraction
and the continuing negative
outlook, Tepe İnşaat
maintained its successful
graphic in 2009, especially for
investment projects, thanks to
a stable growth policy.
Tepe İnşaat
Annual Report 2009
In the Tepe
Prime Business Residence - Avenue
Project put up for
sale in June 2009,
sales performance
attained 80% in
those phases offered
for sale in December.
Introduction
ˊ ˊ Message from the Management
47
Contraction of the world economy, which began with the sub-prime mortgage crisis in the American real estate industry from mid-2007 onwards,
resulted in a global decrease in liquidity during 2008 and 2009 and a
shrinking of the real sector. In addition, the drop in consumer expenditure and consumers’ propensity to spend continued well into 2009.
The 2008 economic crisis, felt throughout the world, was clearly different
from other national or global crises, judging by the contraction and narrowing observed in almost all industries. The industrial and financial giants
of Europe, America and Southern Asia experienced severe bottlenecks
due to the crisis; many of them survived thanks to government subsidies
and credits. As these tough conditions continue to prevail across many
countries, industries and companies, a possible relief is expected for as
late as 2010. Even 2010 is expected to be stagnant according to many
international projections, a fact which worries many governments and
companies. An analysis of the 2008 economic crisis suggests the drop in
oil prices, low interest rates due to sustained loose monetary policies and
the surge in risk appetite stemming from financial engineering schemes
were the main culprits. In this process, another important factor leading
to global imbalances was the coexistence of excessive consumption in
one corner of the world (the US and European countries) with excessive
saving in another (Asian countries).
48
In the preceding period, global imbalances have lead to a significant
contraction in international construction markets; numerous international
and public investors have either stopped ongoing projects or suspended
new ones. Under such circumstances Turkish contractors have had a
hard time finding alternative target countries due to the worldwide scale
of the crisis. It has been very difficult for them to translate their human
resources, equipment and financial power into jobs and cash, even with
radically revised strategies. Consequently, countries with relatively more
favorable conditions have been chosen by contractors. Nevertheless,
in such countries, the profit margin of various projects has significantly
dropped in the past two years. As of today, it is impossible to find projects with favorable profit margins and ready financing except in a few
countries; even in such countries Turkish contractors have to face security issues and political risk.
Despite economic contraction and continuing negative outlook, Tepe İnşaat maintained its successful graphic in 2009, especially with regard to
investment projects, thanks to a stable growth policy. In the Tepe Prime
Business - Residence - Avenue Project put up for sale in June 2009,
sales performance attained 80% in those phases which were offered
for sale in December. In addition, 1,159 out of the 1,306 houses in the
Narcity Housing Project - whose construction started in 2005 - were sold
and a large portion of the property deeds were transferred. The Company also continued with the construction of hospitals, shopping centers
and educational facilities, under its responsibility. Tepe İnşaat continues
its regional activities, such as the construction of the 300,000 square
meters Sulaimaniya University campus, as well as the construction of the
building annex for the American Embassy in Afghanistan, carried out as
part of a joint venture.
With prestigious projects in the past, the Company succeeded in becoming a recognized and respected brand in the housing sector and has
plans for new investments in 2010. In addition to domestic activities,
Tepe İnşaat has ongoing operations in the Middle East, Northern Iraq
and North Africa, in line with its strategic plans.
1,159 out of the
1,306 houses in the
Narcity Housing
Project, whose
construction started
in 2005, have been
sold and a large
portion of the
property deeds have
been transferred.
Tepe İnşaat
Annual Report 2009
The Company
has plans for new
investments for
the year 2010; in
addition to domestic
activities, Tepe
İnşaat continues
operations in
the Middle East,
Northern Iraq and
North Africa, in line
with its strategic
plans.
49
Introduction
It is expected that the sector will recover in 2010 and attain rigorous
growth during 2011 and 2012. The annual average growth for the sector
until 2012 is estimated to be approximately 5-6%. Since interest rates on
housing loans fell below 1% and longer maturity periods have a positive
effect on house buying decisions, various firms in the industry have predicted growth estimates of around 10%.
It is possible for Turkey to boost its production and efficiency and therefore its wealth during the global crisis, thanks to its young population.
In order for this to happen, Tepe İnşaat believes that the country should
realize that consumption without production is now over and that new
opportunities can be created with correct risk management, good governance, proper development of the human resources and by keeping
abreast of technological advances. The mission of the construction sector within such a scheme will be better understood as the country turns
from consumption to saving and investment, in accordance with a target
of balanced growth.
As the world economy starts to pull out of the recession of 2009, Tepe
İnşaat has established the goal of providing resources to Bilkent University and thus to the Turkish educational system in general, with the
support of its employees -without doubt the most precious asset of the
Company.
Ali Haydar
Kurtdarcan
Chairman
Abdullah Bahadır
Güngenci
Executive Director
Süleyman Son
General Manager
50
Board of Directors and
Board of Auditors*
Board of Directors
Ali Haydar Kurtdarcan Chairman
Abdullah Bahadır Güngenci Executive Director
Hanifi Arabacı Member
Vahit Uğurlu Member
Önder Sezgi Member
Board of Auditors
Alaaddin Tabur
Murat Aşkar
* Members of the Board of Directors and Board of Auditors of
Tepe İnşaat Sanayi A.Ş., as determined at the Ordinary General Assembly
dated April 14, 2010.
Senior Management
Abdullah Bahadır Güngenci Executive Director of the Board of Directors Abdullah Bahadır Güngenci was born in Ankara in 1951 and graduated from the Department of Civil Engineering at Middle
East Technical University in 1976. He worked in the Iraq-Turkey Crude Oil Pipeline Project from
1976-1977 and later was part of the construction of the Petkim Aliağa Facilities Water Treatment
and Demineralization Units. From 1980 until 1986, he worked in Bahrain’s AISCO Iron Enrichment
Plant Project, in marine dredging and in the construction of the pier and the plant. His career continued at Günkay İnşaat in Turkey until he joined Tepe İnşaat Sanayi A.Ş. in 1994 as Group Coordinator for Hospital Projects. In the following years, he served as Assistant General Manager in charge
of Domestic Projects and later of Infrastructure Projects. He was appointed Executive Director of
the Board of Directors on April 14, 2010.
Süleyman Son General Manager Born in Ödemiş in 1949, Süleyman Son graduated from the
Department of Mechanical Engineering at Middle East Technical University. His professional career
began in 1971 at the Turkish Electricity Authority (TEK); he later served as Assistant Project Manager at GAMA Endüstrisi A.Ş. and Bahattin Gören and Kiska Kom Company. Son also worked as
Assistant General Manager at Akpınar Yapı Sanayi A.Ş. and at Petkontur İnşaat, where he was a
partner. In 2003, Süleyman Son joined Tepe İnşaat Sanayi A.Ş. as an Assistant Business Development Manager after working at Sibtek İnşaat, Sutek İnşaat and Baner İnşaat. He was appointed
General Manager of Tepe İnşaat Sanayi A.Ş. in 2006. Son currently serves as Board member at Batı
Karadeniz Elektrik Dağıtım A.Ş., TAV Yatırım Holding A.Ş., TAV Tepe Akfen Yatırım İnşaat ve İşletme
A.Ş., TAV Havacılık A.Ş., TAV Esenboğa Yatırım Yapım ve İşletme A.Ş., Dilek İnşaat ve Ticaret A.Ş.
ve Antepe Sağlık, and Turizm Hizmetleri Tic. Danışmanlık A.Ş.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Senior Management
51
Hasan Fehmi Çataltepe Director of Investment Projects Born in Ankara in 1954, Hasan Fehmi
Çataltepe graduated from the Faculty of Architecture at the Ankara State Academy for Engineering
and Architecture in 1979. He began his professional career as a draftsman and then as a building
contractor. After working as an architect at Kutlutaş A.Ş., Çataltepe joined Tepe İnşaat Sanayi A.Ş.
as a Project Coordinator in 1983. He served as Domestic Projects Coordinator between 2001 and
2002 and as Assistant General Manager for Domestic Projects from 2002 until the end of 2009
when he was appointed Director of Investment Projects. He is also a Board member at Riva İnşaat
Tur. Tic. İşl. Paz. A.Ş.
Mustafa Kalender Assistant General Manager, Finance Born in Mengen, Bolu in 1964, Mustafa
Kalender graduated from the Department of Business Administration at Anadolu University
in 1987. He began his professional career with Tekgüç İnşaat and joined Tepe İnşaat in 1988
as Finance Supervisor; he later was appointed Head of Finance and Finance Manager and is
currently Assistant General Manager in charge of Finance. He also served as a Board member
from 2005 until 2010 and is currently on the Board of TAV Esenboğa Yatırım Yapım ve İşletme
A.Ş., TAV İzmir Terminal İşletmeciliği A.Ş., TAV İşletme Hizmetleri A.Ş., TAV Gazipaşa Yatırım,
Yapım ve İşletme A.Ş., TAV Özel Güvenlik Hizmetleri A.Ş., TAV Bilişim Hizmetleri A.Ş., Dilek
İnşaat ve Tic. A.Ş., Antepe Sağlık ve Turizm Hizmetleri Tic. Danışmanlık A.Ş. and Riva İnş.
Tur. Tic. İşl. Paz. A.Ş.
Hürriyet Biricik Assistant General Manager, Business Development and Proposals Born in Istanbul in 1959, Hürriyet Biricik graduated from the Department of Civil Engineering at Middle East
Technical University in 1982. Prior to joining the Tepe İnşaat family in 1994, he worked at Ere
Mühendislik, Günal İnşaat and Çimtur. After successfully carrying out his responsibilities as Construction Supervisor, Project Manager, Proposals Manager, Business Development and Proposals
Coordinator, Biricik was appointed Assistant General Manager in charge of Proposals and Business
Development in 2007.
Orhan Koral Assistant General Manager, Budget and Planning Born in Beyşehir in 1959, Orhan
Koral graduated from the Faculty of Civil Engineering at Istanbul Technical University; he later
received his MBA from Istanbul University. Koral began his professional career in 1984 at Kent
Mühendislik as an Assistant Construction Supervisor. He joined Tepe Yapı Sanayi A.Ş. in 1985
where he worked in various capacities, including Civil Engineer, Final Accounts Manager, Project Monitoring Group Manager and Assistant General Manager until 2001. Orhan Koral was
appointed Assistant General Manager in charge of Budget and Planning in 2006 and currently
serves as a Board member at Dilek İnşaat ve Ticaret A.Ş. and Bilenerji Bilkent Enerji Üretim
Sanayi ve Tic. A.Ş., and Executive Director of Board of Directors at Sports International Bilkent Fitness and Spor Merkezi A.Ş.
Ali Karaca Assistant General Manager, Domestic Projects Born in 1964 in Kahramanmaraş, Ali
Karaca graduated from the Isparta Faculty of Engineering at Akdeniz University in 1988. Until
1992, he worked in Kür İnşaat Sanayi A.Ş. and Nazmi Kürüm İnşaat A.Ş. and then joined Tepe
İnşaat Sanayi A.Ş. From 1992 to 2004 he was Field Engineer, Construction Supervisor and
Project Manager. From 2004 to 2009 he served as Domestic Projects Coordinator and was
appointed Assistant General Manager for Domestic Projects at the end of 2009.
52
Milestones
One of the pioneers and
innovators of the Turkish
construction industry with its
vast experience accumulated
over the years, strong financial
structure and well-respected
corporate identity, Tepe İnşaat
Sanayi A.Ş. is the flagship of
Bilkent Holding.
Tepe İnşaat
Annual Report 2009
53
Introduction
ˊ ˊ Milestones
A Summary of 40 Years in Figures...
Having completed 11
million square meters
of construction in 40
years, Tepe İnşaat
currently has one
million square meters
of ongoing construction
behind its “Under
Construction” signs.
Infrastructure facilities,
power plants, airports,
shopping centers,
Completed Projects
Ongoing Projects
Construction Area (m2) Construction Area (m2)
Airports
3,651,296
Commercial and Industrial Buildings
1,735,628
140,000
Houses
2,109,691
499,822
Shopping Centers
1,094,730
Hospitals
697,091
45,000
Infrastructure Projects
-
Prefabricated Buildings
696,244
Education Buildings
248,249
363,000
Military Projects
608,047
Total
10,840,976
1,047,822
Grand Total
11,888,798 m2
modern housing
projects, health and
educational facilities
are just some of the
Completed Projects (US$)
projects that Tepe
1. Housing
İnşaat has taken pride
2. Hospital
371,663,757
in constructing for the
3. Terminal
1,425,336,863
past 40 years.
4. Commercial Buildings / Office Buildings 462,950,740
5. Shopping Center 343,912,414
6. Education Building 130,735,298
7. Touristic Building 8. Renovation
9. Sports Facilities
10. Prefabricated Housing / Shelter
11. Container
12. Infrastructure
13. Industrial 14. Transport
Total Sum of Completed Projects
728,506,074
47,726,174
120,024,274
24,188,812
179,367,946
9,375,661
411,232,365
89,036,060
79,003,335
4,423,059,772
54
ˊ ˊ Milestones
1980s
1982 Bilkent Campus University lies within the boundaries of Bilkent,
a city created over the course of fifteen years on the plains of Ankara.
Turkey’s first foundation-owned, private university, Bilkent University was
founded in October 1984 by the İhsan Doğramacı Foundation. It began
its academic activity in 1986 with 386 students. The University today
has nine faculties, two undergraduate colleges, three vocational schools and six institutes that provide education to 12,000 students. Bilkent
graduates are among Turkey’s most select human resource. Located on
612 hectares, Bilkent is a “city of science” and its campus, dormitories,
business and shopping centers, sports complex, concert halls, hotel and
movie theaters, dam, power plant, wooded areas, symphony orchestra
and excellent infrastructure are able to cater to every need.
Turkey’s first
foundation-owned,
private university,
Bilkent University was
founded in October
1984 by the İhsan
Doğramacı Foundation.
Bilkent graduates are
among Turkey’s most
select human resource.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Milestones
55
56
ˊ ˊ Milestones
1990s
1999 Atatürk Airport (Build-Operate-Transfer) The İstanbul Atatürk Airport International Terminal was built by a joint venture between the
Tepe and Akfen Groups (TAV), the winner of the Build-Operate-Transfer
tender. A company specialized in airport construction, operation and financing, TAV today is a leader in Turkey and on its way to becoming a
dominant player in the Middle East, North Africa and the Caucasus. The
Atatürk Airport New International Terminal Project was completed at a
cost of US$ 397 million and commenced operations on December 22,
1999. With an additional facility launched in 2004, the annual capacity
of the terminal increased from 14 million to 20 million passengers. In
July 2005, TAV also assumed operations at Atatürk Airport Domestic
Terminal. Covering an area of 62,500 square meters, the Domestic Terminal has been modernized to accommodate an average of 7.5 million
passengers a year.
The İstanbul Atatürk
Airport International
Terminal was built
by a joint venture
between the Tepe
and Akfen Groups
(TAV), the winner of
the Build-OperateTransfer tender. The
Domestic Terminal has
also been modernized
to accommodate an
average of 7.5 million
passengers a year.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Milestones
57
58
ˊ ˊ Milestones
2000s
2000 Turkish Armed Forces Rehabilitation Center
Built on a total area of 102,500 square meters and with a 400-bed capacity, this facility was established to provide rehabilitation and relaxation
to army veterans. Built at a cost of US$ 132 million, the actualization of
this facility was the outcome of an architectural contest.
İş Bankası Headquarters Complex Turkey’s first smart building, the
complex is one of the most majestic high-rises in Istanbul, located in the
heart of industry, commerce and culture. Built at a cost of US$ 190 million,
the complex has been equipped with the 21st century’s latest technology
and is an important example of smart buildings, not only in Turkey but in
Europe and the Middle East as well. With two towers - 52 and 36 stories
respectively - İş Bankası Headquarters Complex is the highest skyscraper
between Dubai and Frankfurt.
2001 Kemer Rose Residence Built on 35,000 square meters among
the unique rose gardens in Kemerburgaz, this housing complex consists
of 70 villas. Offering a peaceful lifestyle in the midst of a natural setting,
Kemer Rose Residence is also equipped with sports facilities that offer a
wide range of activities.
2002 Beykoz Mansions Built on an area of 100 hectares in the Saip
Molla Pasha Woods in Beykoz, Istanbul, Beykoz Villas are one of Tepe
İnşaat’s most prestigious projects and offers 401 mansions in perfect
harmony with their natural surrounding. The whole atmosphere reflects
the beautiful attributes of a truly unique life style. The historical Hunting
Lodge, renovated true to its original form, serves residents with a library,
billiards, game and event lounges, a spacious garden designed for large
receptions and a kitchen. With a project cost of US$ 90 million, Beykoz
Villas are an attractive destination for an exclusive lifestyle in Istanbul.
Tepe Nautilus Shopping Center Nautilus, or lighthouse, was inspired by the seaside around Kadıköy, on the Anatolian side of Istanbul,
one of the world’s most beautiful coastal cities. With a market value of
€ 150 million, Nautilus is the largest shopping center on Istanbul’s Anatolian side. With its bright design, Nautilus offers visitors a comfortable
shopping environment.
Built at a cost of
US$ 190 million,
the İş Bankası
Headquarters
Complex has been
equipped with the
21st century’s latest
technology.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Milestones
59
60
ˊ ˊ Milestones
2004 The Eczacıbaşı Kanyon Project The Eczacıbaşı Kanyon Project is a stunningly modern open-air shopping center built by Tepe İnşaat
in Istanbul. Kanyon hosts 160 shops, a gourmet supermarket, a street
market, movie theaters, restaurants, cafeterias, bars, a sports and health
center, indoor and outdoor swimming pools and open-air performance
venues, residences and office buildings and shopping and amusement
centers. Kanyon was built via a partnership between Eczacıbaşı and İş
Real Estate on an area of 250,000 square meters in compliance with
national and international earthquake regulations. The cost of the project
was US$ 41 million.
2005 Baku-Tbilisi-Ceyhan Crude Oil Pipeline Tepe İnşaat took
part in the building of the pipeline’s 277-kilometer Posof-Erzurum section
and the pump stations project along the pipeline.
• İmranlı-Kayseri Natural Gas Pipeline
• Kütahya-Bilecik-Uşak Natural Gas Pipeline
2006 Narcity Housing Project Built on approximately 147,000
square meters in Maltepe, Istanbul, the Narcity complex is landscaped primarily with pomegranate trees, reflecting the Turkish name for
pomegranate (nar). This complex consists of 1,283 apartments built in
compliance with the latest earthquake regulations and state-of-the-art
soundproofing, heat and water insulation systems. With its high-quality
materials and workmanship, as well as its extensive social facilities and
secure systems, Narcity Istanbul is one of Istanbul’s favorite residential
destinations. The US$ 200 million project was launched in January 2006.
360 units in plot C were delivered to the owners and plots D and E are
open for residential occupancy.
Esenboğa Airport Ankara finally has an airport that is truly worthy of
its location in Turkey’s capital city. Esenboğa Airport was built at a cost
of € 188 million and has an annual passenger capacity of 10 million. It
is the only airport in Turkey to combine both domestic and international
terminals under one roof. Completed one year ahead of schedule, it has
became the modern face of Turkey’s capital.
Kanyon was built via a
partnership between
Eczacıbaşı and İş Real
Estate on an area of
in compliance with
national and international
earthquake regulations.
The cost of the project
was US$ 41 million.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Milestones
61
62
ˊ ˊ Milestones
2007 Bilkent Garden Homes At an investment value of US$ 52
million, this project consists of 124 twin-villas built on a 123,000 square
meters. Set amid superb natural beauty, twin villas, 500 square meters
each, are equipped with state-of-the-art technology. With two playgrounds for children, an observation deck, jogging tracks, swimming pool,
game room, fitness center with sauna, cafeteria, tennis, basketball and
volleyball courts, Bilkent Garden Homes have been designed to cater to
its residents’ every social need. Offering an urban location while at the
same time far from the hustle and bustle of the city and combining the
beauty of nature with the amenities of the contemporary life, Bilkent Garden Homes has been met with great interest. The project was launched
at the end of 2005 and completed at the end of 2007. All units were sold
before the construction was actually completed.
2008 Hacettepe University Hospitals Morphology Building and
Seventh & Eighth Building Retrofits Completed in December 2008
at a cost of TL 71 million, this project has a total construction area of
28,500 square meters. As part of this project, among the most important
undertakings by Tepe İnşaat for Hacettepe University, Seventh & Eighth
Buildings and the Morphology Buildings were reinforced against earthquakes. The modifications in the Internal Medicine, Urology, Neurology, General Surgery, Brain Surgery and Gastrology departments, located in the Seventh Building, were completed. In addition, Biochemistry, Microbiology,
emergency laboratories, Endocrinology, Geriatrics, Nephrology, Infection,
Rheumatology, Hematology, Gastrology, Coronary Intensive Care departments and inpatient floor retrofits were also undertaken. The project was
completed and delivered as of December 2008.
2009 Tepe Prime Project The project is comprised of Tepe Prime
Business, Tepe Prime Residence and Tepe Prime Avenue and has an indoor area of 92,800 square meters. Its objective is to provide utter comfort to its dwellers and guests; it is predicted to be finished by 2011.
Tepe Prime Project
comprises Tepe Prime
Business, Tepe Prime
Residence and Tepe
Prime Avenue, has an
indoor area of 92,800
square meters and aims
to provide utter comfort
to its dwellers and
guests.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Milestones
63
64
Subsidiaries and Affiliates
Company Total Capital
Tepe Emlak Yatırım İnş. ve Tic. A.Ş. TAV Havalimanları Holding A.Ş. TAV Yatırım Holding A.Ş. Tepe Mobilya San. A.Ş. Tepe Home Mobilya ve Dek. Ürn. A.Ş. Ati Servicess Sa Tepe Betopan A.Ş. Sports International A.Ş. Tepe Savunma ve Güv. Sist. A.Ş. Bilintur A.Ş. Meteksan Matbacılık A.Ş. Bil Enerji A.Ş. Tepe Prefabrik İnşaat Sanayi ve Ticaret A.Ş. Antepe Sağlık ve Turz. Hizm. Tic. Danş. A.Ş. Dilek İnşaat A.Ş.
Bilan Bilkent Ankara Tepe Otel İşletmeciliği A.Ş.
C.B. Spolka Zograniczona Odpowiedzia
Ankara Teknoloji A.Ş.
Artı Döviz A.Ş.
Meteksan Savunma A.Ş.
Batı Karadeniz Elektrik Dağıtım A.Ş.
Park Villa İnşaat ve Turizm A.Ş.
Tepe İnşaat ve Ticaret (Kıbrıs) Limited Hyper Foreign Trade Holland N.V.
Tepe Grubu United Kingdom
Tepe Ukrayna Ltd. Tepe Stroi Yenikentler Yatırım A.Ş.
Meteksan Uzay Teknoloji A.Ş.
Optisis İletişim ve Bilgi Teknolojileri A.Ş.
Knauf İnşaat ve Yapı Elm. A.Ş.
Bilsigorta A.Ş.
Bildes Bilkent Destek A.Ş.
Bilbak Bilkent Bak. A.Ş.
Esenboğa Ankara Döviz Ticareti A.Ş.
Dafne Ege Döviz Ticareti A.Ş.
PFT Sıva Sistemleri A.Ş.
Riva İnşaat Turizm A.Ş.
TAV Esenboğa Yatırım Yapım ve İşletme A.Ş.
TAV Tepe Akfen Yatırım İnşaat ve İşletme A.Ş.
Bilkent Enerji Yat. A.Ş.
Türkofon Müzik Aletleri A.Ş.
Share Participation
Capital (TL)
160,000,000
363,281,250
100,500,000
50,000,000
61,000,000
36,074,062
20,000,000
16,000,000
17,000,000
40,000,000
62,526,000
30,000,000
6,000,000
3,000,000
22,000,000
5,500,000
7,843,277
9,600,000
2,000,000
1,500,000
10,000,000
1,400,000
500,000
145,000
137,019
597,300
61,185
61,185
170,000
500,000
300,000
8,017,000
150,000
50,000
50,000
500,000
500,000
150,000
65,000
241,650,000
135,000,000
50,000
50,000
Ratio (TL)
114,324,138
94,890,027
46,732,500
41,981,343
33,571,300
16,492,950
13,200,000
11,888,158
8,329,963
8,000,000
5,864,454
4,530,042
4,213,329
2,975,500
2,968,610
2,694,723
2,221,970
1,106,032
1,039,919
735,000
607,310
294,000
250,000
144,565
73,394
61,918
61,185
61,185
5,000
5,000
3,000
1,048
200
70
70
25
25
13
10
10
1
1
1
(%)
71
26
47
84
55
46
66
74
49
20
9
15
70
99
13
49
28
12
52
49
6
21
50
100
54
10
100
100
3
1
1
0
0
0
0
0
0
0
0
0
0
0
0
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Subsidiaries and Affiliates
65
Tepe Emlak Yat. İnş. ve Tic. A.Ş.
The Company began operating as a part of Tepe İnşaat in 1996 and has
been an independent firm since 1998. Tepe Emlak is engaged in the development of hypermarkets, construction markets, large stores, shops,
multi-lounge movie theatres, offices and shopping centers containing
amusement centers and fast food sections in various cities including
Ankara, Istanbul, Gaziantep, Adana and Konya. The Company also manages Ankara Bilkent Center and Istanbul Nautilus Shopping centers.
Tepe Home Mobilya ve Dekorasyon Ürünleri Tic. A.Ş.
Founded in 1997, Tepe Home is the first and largest furniture, home
accessories, appliances and electronics retail chain in Turkey. Of the
20,000 furniture items offered for sale at Tepe Home, 75% are produced
by Tepe Mobilya; others are procured from domestic and international
suppliers that manufacture high-quality goods. The Company has a total
of 16 stores; one in Dubai, United Arab Emirates.
Tepe Mobilya San. ve Tic. A.Ş.
Founded in 1969, Tepe Mobilya is one of the oldest companies within
Bilkent Holding. The Company operates on 183,000 square meters of
outdoor space and 120,000 square meters of indoor manufacturing area
in its factories in Ankara (Bilkent, Sincan, Eryaman) and Eskişehir. It is
one of the largest furniture manufacturers in Turkey. Tepe Mobilya sells all
types of home and office furniture through Tepe Home Stores as well as
in its own stores. In addition, the Company undertakes all decoration and
furnishing work for comprehensive projects that require expertise such
as hotels, tourism centers, business centers, conference halls, education institutions, health centers, stores and airports in Turkey as well as
overseas.
Bilintur A.Ş.
The Company was founded in 1988 to operate in the tourism and services industries. The Bilintur Group is comprised of Bilintur Catering Center and Bilkent Hotel and Conference Center.
66
ˊ ˊ Subsidiaries and Af filiates
Sports International A.Ş.
Established in 1994, Sports International provides high quality and comfortable services to its members. Sports International members enjoy
these services in five facilities located in Ankara, Istanbul and Izmir, under
the supervision of experts and in a privileged environment. All of the facilities are capable of responding to a range of needs, with tennis courts,
outdoor and indoor swimming pools, squash courts, indoor basketball
and volleyball courts, running tracks, café-restaurants and bridge centers.
Tepe Betopan A.Ş.
Founded in 1984 as Turkey’s first cement bonded particle board facility,
Tepe Betopan doubled its production capacity in 1999 after its manufacturing facilities were revised with state-of-the-art technology systems,
just like in all the other Tepe İnşaat affiliates. Acquiring the other cement
particle board factory located in Arhavi in 2001, Tepe Betopan increased
production capacity to 67,500 cubic meters annually and has become its
only supplier in Turkey and one of the world’s largest.
Tepe Savunma ve Güvenlik Sis. San. A.Ş.
The Company commenced operations in 1992 as a private security establishment to cater to the physical security system and service needs of
Bilkent Holding companies. The Company continues to provide private
security services to airports, banks, business and shopping centers, universities, factories and many other companies throughout Turkey.
Ankara Teknoloji A.Ş.
Ankara Teknoloji is the operator of Ankara Cyberpark, a science and
technology park located on Bilkent University’s campus. Established at
the end of 2002, Cyberpark is the fastest-growing technopark in Turkey
with more than 170 companies and an R&D staff of 1,200. Ankara Teknoloji is primarily involved in leasing office space, industrial zones and
warehousing areas to participant companies under favorable terms. The
Company also provides many premium technopark services to the firms
located in Cyberpark.
Tepe İnşaat
Annual Report 2009
Introduction
ˊ ˊ Subsidiaries and Affiliates
67
Dilek İnşaat ve Tic. A.Ş.
Dilek İnşaat ve Tic. A.Ş. began operating in 1968 and joined the Bilkent Group after Bilkent University was established in 1986. Dilek İnşaat
constructed the library, president’s office, faculty and college buildings,
research centers, faculty housing, student dormitories, health center and
the 4,000-person capacity semi-outdoor Odeon concert hall of Bilkent
University, since 1973. The Company recently completed a 288-unit housing complex in Kastamonu for the Housing Development Administration
of Turkey, the Silivri Prison Complex for the Ministry of Justice of Turkey,
500 housing units and infrastructure project and the Alanya Mahmutlar
Terradesir Homes. Dilek İnşaat is currently engaged in the construction
of hospitals and various faculty buildings for five universities.
Meteksan Matbaacılık ve Teknik Sanayi Tic. A.Ş.
Founded in 1969 as Medikal Teknik Sanayi to serve the health industry,
Meteksan began operations in the printing and publishing industry in
1975 with the installation of its printing facilities. Meteksan is the market
leader today with paper and cardboard manufacturing taking place in a
total indoor area of 35,000 square meters. It provides customized printing and distribution services as well as organization services (printing,
packaging, staffing, transportation, distribution, collection, etc.) for official entities and private sector companies.
Tepe Prefabrik A.Ş.
Founded in 1977, Tepe Prefabrik is the oldest and most experienced
company in its industry in Turkey and surrounding regions. With longterm experience, the Company is specialized in the mass production
of modular prefabricated systems, light galvanized steel structures and
demounted (flat-packed) or mounted living containers. Tepe Prefabrik
has operations in Turkey as well as in the Middle East, Gulf Countries, North Africa, Continental Africa, Asia Minor, the Commonwealth of
Independent States, Russia, Kazakhstan, Ukraine, Eastern Europe and
Balkan countries.
Bilsigorta A.Ş.
Founded in 1989 to serve the insurance consultation needs of Group
companies, as well as personnel insurance needs, Bilsigorta also acts as
a broker for various insurance companies for the purpose of expanding
its non-group insurance portfolio.
70
Domestic Projects
Hospitals
Akdeniz University Hospital II. Section Servicing Construction
Gazi University Hospital Retrofit Work
Fırat University Education and Research Hospital
Hacettepe University Hospitals Retrofit and Large Scale Renovation
Construction
Shopping Centers
Forum Gaziantep Shopping Center
Forum Kayseri Shopping Center
Education
Buildings
Bilkent Eastern Provinces Erzurum 3. Phase Work
Akdeniz University Faculty of Agriculture 8. Education Complex
II. Section Construction
Bilkent University 2009 Projects
Other Contracting
Projects
Turkish Cement Manufacturers’ Association Technical and Industrial
Vocational High School Project
Iraq
Sulaimaniya University
İhsan Doğramacı Erbil Foundation Schools Construction
Afghanistan
Afghanistan OBO US Embassy
Investment Projects
Tepe Prime Business, Residence, Avenue Project
71
Construction is not simply
making buildings. Being
devoted and showing
respect to the essence of
a project and the dream
that lies behind that project
is the make-or-break point
in contracting. Tepe İnşaat
undertakes all of its projects
with this awareness and
it constructs its ongoing
projects by uniting hard
work with dreams.
72
Domestic Projects
Active since 1969 in
construction, one of the pillars
of economic development
in Turkey, Tepe İnşaat is
the pioneer in its field thanks to
the successful graphic that
it has maintained since its
day of establishment.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ Domestic Projects
73
Hospital Projects
Commencement Date:
August 2, 2002
Contract Value:
TL 145,000,000
Total Construction
Area: 109,000 square
meters
Delivery Date:
December 31, 2013
Client:
Akdeniz University
Rectorate
Akdeniz University II. Section Servicing Construction Project
This project was launched in 2002; by the end of 2009, a construction area
of 73,000 square meters was completed and 12,000 square meters of the
ongoing construction was earmarked for an R&D unit. The R&D unit will host
high technology laboratory research. Aside from critical units such as GMP,
quality check, stem cells, animal labs and reproduction labs; work areas
such as offices, conference, meeting and seminar halls and a library, as well
as social facilities such as restaurants, cafeterias, saunas will be constructed as part of the project. 24,000 square meters of the construction area will
serve the hospital building. This section will feature a technical center, sterilization, laundry and kitchen units, as well medical units such as angiography,
pathology and ophthalmology. The official completion date is February 22,
2013; at year-end 2009, 52.68% of the contract has been complete. The
inpatient complex, the laboratory complex, the polyclinic blocks and the
transition blocks have been completed.
74
ˊ ˊ Hospital Projects
Commencement Date:
November 28, 2008
Delivery Date:
February 28, 2009
Client: Gazi University Health
Research and Application
Center
Gazi University Hospital Retrofit Work I
Commencement Date:
August 27, 2009
Delivery Date:
October 26, 2009
Client: Gazi University Health
Research and Application
Center
Gazi University Hospital Retrofit Work II
Commencement Date:
January 2010
3,200 square meters
Delivery Date: March 2011
Client: Gazi University
Rectorate
Gazi Üniversitesi Hospital Retrofit Work III
Contracted by Tepe İnşaat in 2008, the retrofit work for Gazi
University’s Faculty of Medicine Hospital D1 Building (floors
5-15) was completed in a very short period (75 days) at a turnkey lump sum price and with a 10% increase in the budget estimate; the hospital has commenced operations. As part of the
project, the retrofit work for bathrooms, floor offices, nurse stations and patient lockers in inpatient services were completed.
In 2009, as part of a project undertaken in the Gazi University Faculty of Medicine, the clinic of obstetrics and gynecology, classrooms for research assistants and undergraduate
in-service training, as well as the polyclinic and other service
units underwent retrofit work and renovation. The project was
completed in a period of 60 days; service commenced with
unit price bid proposal method and with a 20% increase in the
budget estimate.
As part of the construction of the Hematology Department of
Gazi University’s Faculty of Medicine, a service for the outpatient and inpatient treatment of leukemia patients is being built.
This service will feature infection control, state-of-the-art devices
and a total of 57 single rooms, comprising 18 rooms with HEPA
filters, four rooms with intensive care facilities and 35 normal
rooms. It is predicted that the project will be completed and delivered by March 2011.
Tepe İnşaat
Annual Report 2009
Commencement Date:
December 16, 2002
Contract Value:
TL 56,000,000
Total Construction
Area: Delivery Date:
December 31, 2014
Client: Fırat University
Rectorate
2009 Operations
75
Fırat University Education and Research Hospital
A 600-bed research hospital is constructed as part of this project within
Elazığ’s Fırat University. According to Article 44 of the State Tender Law
No. 2886 four tenders have been organized in the years 1985, 1993, 1997
and 2002. The construction of the project continues.
In the first tender, the project area was designated as 108,000 square meters; however, due to the appearance of new needs, in 1998 the area was
revised upwards to 140,000 square meters. 90,000 square meters have
been completed and put in commission, including three-story buildings,
S1 to S16, the eight-story building S9, the twelve-story buildings P1 - P2
- P3 and the ten-story transition buildings P2 to O. The O buildings which
cover a total area of 40,000 square meters and which comprise buildings
with four and seven floors are to be completed by 2014.
76
ˊ ˊ Hospital Projects
Commencement Date:
October 9, 2009
Hacettepe University Hospitals Retrofit and Large-Scale
Renovation Construction
Contract Value:
TL 93,700,000
This project obtained from the Hacettepe Hospital in 2009 comprises the
construction or renovation of inpatient floors, meeting halls, polyclinics
and the cafeteria, miscellaneous additional constructions, establishment
of indoor installations and electricity systems, air conditioning, automation, establishment of common installations and electricity systems; all to
be carried out with first class material and workmanship. The project is
predicted to be completed by December 23, 2011.
Total Construction
Area: 80,000 square
meters
Delivery Date:
December 23, 2011
Client: Hacettepe
University
Directorate of
Strategy
Development
Tepe İnşaat
Annual Report 2009
2009 Operations
77
78
Shopping Center Projects
Commencement Date:
August 1, 2008
Contract Value:
€ 10,700,000
Delivery Date:
2009
Construction Area:
100,000 square
meters
Client: Multi Turkmall
Yirmidokuz Emlak
Yat. İnş. Tic. A.Ş.
Forum G. Antep Shopping Center
In 2008, Tepe İnşaat had carried out the shell
& core construction work for the Gaziantep Forum Shopping Center, a complex with a total
area of 100,000 square meters. With a leasable
area of 44,000 square meters, it is a five-story
complex, two stories of which make up the
car park. Forum Gaziantep Shopping Center
Project has been completed in 2009, upon demand of the client.
Tepe İnşaat
Annual Report 2009
Commencement Date:
December 14, 2009
Contract Value:
€ 24,600,000
Delivery Date:
November 30, 2010
Construction Area:
Client:
Multi Turkmall
Onyediemlak Yat.
İnş. Tic. A.Ş.
2009 Operations
79
Forum Kayseri Shopping Center
This project, to be carried out by Tepe İnşaat in Kayseri, is comprised of
a four-story shopping center with a leasable area of 65,000 square meters built on an area of 75,500 square meters. The Project will feature a
hypermarket, department stores, movie theaters, restaurants and parks,
as well as open and covered parking area for 2,000 vehicles.
The completion of the shell & core construction is planned for November
30, 2010. The whole project is envisaged to be completed and opened
in the third quarter of 2011.
80
Education Buildings
Commencement Date:
May 7, 2009
Contract Value:
TL 6,700,000
Total Construction
Area: 4,550 square
meters
Completion Date:
December 25, 2009
Client:
Bilkent University
Rectorate
Bilkent Eastern Provinces Erzurum Third Phase Work
This school construction project is a part of Bilkent University’s social responsibility operations and as part of its third phase, in 2009, 4,550 square
meters of high school buildings have been completed and education has
commenced. To date, a total of 25,545 square meters of construction has
been completed, including 8,795 square meters of educational buildings,
2,016 square meters of multi-purpose rooms, 6,493 square meters of
gyms, 8,241 square meters of housing facilities, transformer stations, storehouses and guardhouses. The first phase was completed by end-2007
and the second phase as of end-2008.
Tepe İnşaat
Annual Report 2009
2009 Operations
81
Commencement Date:
June 14, 1998
Akdeniz University Faculty of Agriculture
8. Education Complex II. Section Construction
Contract Value:
TL 4,900,000
The construction of Akdeniz University’s Faculty of Agriculture Eighth
Educational Complex II. Section was taken over from Dilek İnşaat ve
Ticaret A.Ş. on March 17, 2008. Dilek İnşaat completed 9,685 square
meters of the work. Tepe İnşaat finished a further 5,082 square meters,
made up of three classroom buildings.
Total Construction
Area: 14,767 square
meters
Completion Date:
May 7, 2011
Provisional Delivery
Date: August 28, 2009
Client: Akdeniz
University Rectorate
The construction was completed on August 28, 2009, in order to be ready for the academic year 2009-2010, its provisional delivery was completed and the building handed over to the administration.
82
Commencement Date:
January 1, 2009
Contract Value:
TL 8,200,000
Delivery Date:
December 31, 2009
Construction Site:
Bilkent Campus
Client: Bilkent
ˊ ˊ Education Buildings
Opening its doors to 386 students in 1986, Bilkent University today is
a world-renowned educational center with nine faculties, two undergraduate colleges, three vocational schools comprised of 38 educational programs, 12,000 students and faculty comprised of academic staff
from 40 different countries. Due to its high standards and innovative
approach, aside from new state-of-the-art buildings added each year,
the present buildings undergo repairs, renovation and retrofit work, in a
diligent and systematic manner. In 2009, many of such buildings have
been renovated or repaired successfully, so as to become ready for the
new academic year.
Tepe İnşaat
Annual Report 2009
Commencement Date:
January 7, 2010
Contract Value:
TL 11,300,000
Delivery Date:
December 31, 2010
Construction Site:
Bilkent Campus
Client: Bilkent
2009 Operations
83
Every year various construction and renovation activities are undertaken
at Bilkent University to meet rapidly changing needs. One such activity is
the construction of İhsan Doğramacı Foundation’s Ankara Private Bilkent
Laboratory Primary School and High School’s New Building 1. Phase (Building A), started in January 2010 and planned for completion in August
2010. The structure has 5,550 square meters of construction area and has
the status of Anatolian High School.
Every year, present university faculties such as departments, administrative units, institutes, vocational schools, laboratories, dormitories etc., scattered over an area of 5 million square meters are repaired and renovated,
thereby preserving the modern appearance of the Bilkent University.
84
Other Contracting Projects
Commencement Date:
April 16, 2008
Turkish Cement Manufacturers’ Association
Technical and Industrial Vocational High School Project
Contract Value:
TL 18,300,000
Started in 2008, the TCMA Technical and Industrial Vocational High
School Project was implemented in an area of 21,000 square meters
located in Istanbul, Kadıköy, Küçükbakkalköy. According to the project,
Tepe İnşaat has completed a total of 15,400 square meters of indoor
area construction. As part of the high school, 17 classrooms, two foreign
language laboratories, a computer laboratory, an IT center, physics, chemistry and biology labs, fine arts and music classrooms were completed.
In addition, workshops/laboratories with an indoor area of 1,290 square
meters including mezzanine (accessible from inside the school), additional workshops with an indoor area of 340 square meters (accessible
from outside the school and therefore designated as “open workshop”
in the project), a library, administrative units, a 852 square meter indoor
gym in line with international standards, a conference hall with a capacity
of 300, a transformer station, two housing units for the director and the
assistant director, an open basketball court, a ceremonial area and car
park were also completed by Tepe İnşaat and delivered in 2009.
Construction Area:
Delivery Date:
December 31, 2009
Client: Turkish
Cement
Manufacturers’
Association
Tepe İnşaat
Annual Report 2009
Commencement Date:
October 1, 2009
Contract Value:
TL 10,000,000
Construction Area:
Delivery Date:
July 2, 2010
Client: Bilkent
2009 Operations
85
Meteksan Matbaa, a Bilkent Holding company, has printed a plethora
of exam papers since 1974, including exam papers for the Student Selection and Placement Center (ÖSYM). Meteksan Matbaa will continue
printing operations from a new facility built for this purpose.
Started by Tepe İnşaat in October 2009 and envisaged to be finished by
May 2010, the printing facilities have a total indoor construction space
of 11,760 square meters. The building has three stories, each with an
approximate area of 3,900 square meters. Aside from printing areas,
it includes 44 rooms with French beds, a cafeteria seating 80, offices,
technical rooms, as well as social areas such as TV, fitness, table tennis,
billiards rooms and wet volume.
86
Tepe İnşaat, considers it as
a national responsibility to
carry its experience,
accumulated knowledge and
vision beyond the region.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ International Projects
87
Iraq Projects
Commencement Date:
July 15, 2008
Construction of İhsan Doğramacı Erbil Foundation Schools,
Iraq
Contract Value:
US$ 31,500,000
Constructed as an investment project in Erbil, Northern Iraq, İhsan Doğramaci Erbil Foundation Schools will be built on a total area of 75,000
square meters. This comprehensive educational complex will consist of
an elementary school, a junior and senior high school, a performance hall
with a seating capacity for 700, indoor and outdoor sports fields, a library,
laboratories, art and music classrooms, a cafeteria and lounge building,
an administration building and housing units. The total indoor area will be
30,332 square meters.
Total Construction
Area: 36,592 square
meters
Delivery Date:
August 31, 2011
Client: İhsan
Doğramacı Erbil
Foundation
The project’s construction area has expanded to a total of 36,592 square
meters, with the addition of an indoor swimming pool, a kindergarten and
three villas to the existing plan. The shell & core construction work has
been completed; the primary school, cafeteria, performance hall, administrative building, laboratories, library buildings and two housing units in
the first phase have priority and are set to be completed by July 2010.
88
Contract Date:
January 17, 2005
Contract Value:
US$ 305,300,000
Delivery Date:
December 31, 2012
Client: Republic of Iraq,
Ministry of Higher Education
and Scientific Research
ˊ ˊ Iraq Projects
Sulaimaniya University, Iraq
The new campus construction project for the Sulaimaniya University in Sulaimaniya, Northern Iraq is a partnership with Tepe İnşaat
holding 75% and FDC 25%. Together with an additional contract,
the Sulaimaniya University New Campus project will extend over an
area of 2 million square meters. Planned to be completed by the
end of 2012, the university will have a capacity for 25,000 students.
The project includes the construction of faculty buildings, multipurpose indoor and outdoor sports facilities, swimming pools, a
health center, dormitories for girls and boys, an open amphitheater,
a cafeteria and social facilities. The campus will have a very modern
appearance with complimenting infrastructure and landscaping; 53
different buildings and facilities will make up the project. There is
ongoing work in 20 different buildings as well as on the infrastructure and landscaping at the end of 2009, 47% of the project has
been completed.
Tepe İnşaat
Annual Report 2009
2009 Operations
89
Afghanistan Projects
Commencement Date:
December 15, 2009
American Embassy Building and
Facilities, Kabul Afghanistan
Contract Value*
(Share of Tepe İnşaat)
US$ 68,000,000
Delivery Date:
March 15, 2012
Tepe İnşaat is going to actualize a project for the
US Dept of State Bureau of Overseas Buildings
Operations (OBO) in accordance with design &
build principles, inside the present premises of
American Embassy in Kabul, Afghanistan and
in an additional plot to be added to the complex. The project concerns the construction of
annex buildings/facilities and the renovation or
amelioration of relevant infrastructure/landscaping.
Client: US Dept. of
State Bureau of
Overseas Buildings
Operations (OBO)
By the end of 2009, the joint venture ECCI-C,
formed by the US company ECC, Tepe İnşaat
and Metag İnşaat, is continuing with the project
design and mobilization activities.
Total Construction
Area: 51,290 square
meters
*Contract values were calculated according to the revenue
figures at the completion of the job.
90
Investment Projects
Tepe İnşaat successfully
carries out investment
projects that bring together
various activities such as
land development, financing,
project, construction and
marketing in an integrated
structure.
Tepe İnşaat
Annual Report 2009
Commencement Date:
January 2006
Contract Value:
US$ 300,000,000
Total Construction
Area: 285,000 square
meters
Delivery Date:
Plots C, D and
E opened for
residential
occupancy in 2007,
plots F and G opened
for residential
occupancy in mid2008. Plot A will be
delivered at the end
of 2010; plot B will be
delivered at the end
of 2011.
2009 Operations
ˊ ˊ Investment Projects
91
Narcity is a contemporary residential area, comprised of 1,414 apartments
and constructed on 147,000 square meters in Maltepe, Istanbul. It is built
in accordance with the latest earthquake regulations and provides a comfortable and secure place to live.
The complex offers a view of the sea and a wooded area featuring many
lovely pomegranate trees in its landscaping. With an extensive selection
of social facilities to meet every need of today’s city dwellers, Narcity features one indoor and three outdoor swimming pools, a fitness room with
sauna, two tennis courts, jogging/dog walking paths, a basketball court,
billiards and table tennis, a café, a TV and cinema lounge, a tea garden, a
meditation garden, children’s nurseries and playgrounds. The complex is
also equipped with a camera surveillance security system.
Consisting of a variety of apartment designs and sizes, the complex features PVC exterior siding, doors and windows; in buildings where insulation
is crucial, insulating glass was used. Living rooms, kitchens and bedrooms
have laminated parquet flooring and the highest quality domestic ceramic
tile bathroom floors. Walls are painted with washable water-based paint
applied on plaster or plasterboard; ceilings are painted with water-based
paint on satin-finished plasterboard. Only state-of-the-art materials and
workmanship have been used in the construction of Narcity. This residential community is expected to breathe new life into the urban environment.
92
Commencement Date:
October 2008
Contract Value:
TL 320,000,000
Total Construction
Area: 92,800 square
meters
Delivery Date:
October 2011
Land Owner:
Turkish Cement
Manufacturers’
Association
Tepe Prime Project
The Tepe Prime Project will be built on lots owned by the Turkish Cement
Manufacturers’ Association located on kilometer nine of the Eskişehir
Highway and between the Bilkent and Hacettepe Bridges. It will consist
of Tepe Prime Business, Tepe Prime Residence and Tepe Prime Avenue
and have an indoor area of approximately 92,800 square meters.
Featuring unique landscaping with an infrastructure capable of meeting
all contemporary needs, flexible office space allowing easy separation
and consolidation of offices, a shopping center with a unique and modern concept and a rich variety of social facilities, this project is planned
for completion at the end of 2011. With modern offices, residential units
and shopping centers, the Tepe Prime Project is designed as an answer
for those in search of prestige, quality and luxury in Ankara.
Tepe İnşaat
Annual Report 2009
2009 Operations
93
94
TAV Havalimanları (TAV Airports)
TAV Airports carries on
with its relentless efforts to
provide complete services
in an integrated fashion at
airports utilized by thousands
of people every single day.
It has thereby become a global
company.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ TAV Airports
95
96
ˊ ˊ TAV Airpor ts
1997
• TAV was founded.
• ATU and BTA ventures, providing duty-free shopping and catering
services, were established under the TAV umbrella.
Thanks to its
know-how, highlyqualified human
resources and
2000
advanced technology,
• TAV began operating the Istanbul Atatürk Airport International Terminal.
success story in its
TAV became a great
industry and a global
2001
• The launch of “primeclass” CIP service.
2004
• TAV’s operating rights for the Atatürk Airport was extended until 2005.
• BTA began operating the Istanbul International Airport Hotel.
• TAV assumed the construction and operation of the Esenboğa Airport
Domestic and International Terminal; TAV Esenboğa Yatırım Yapım ve
İşletme A.Ş. (TAV Esenboga) was founded.
• TAV İşletme Hizmetleri A.Ş. (TAV O&M) was founded.
brand in airport
construction projects,
as well as the totally
new area of airport
operations.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ TAV Airports
97
98
ˊ ˊ TAV Airpor ts
2005
• TAV was awarded the tender to operate the Atatürk Airport International
and Domestic Terminal Building, Parking Garage and the General Aviation
Terminal for 15.5 years under a lease agreement.
• TAV İstanbul Terminal İşletmeciliği A.Ş. (TAV Istanbul) was founded.
• Atatürk Airport Domestic Terminal also commenced operation under the
TAV umbrella.
• Acquisition of 60% of Havas shares.
• Construction and operation of the İzmir Adnan Menderes International
Terminal was transferred to TAV; TAV İzmir Terminal İşletmeciliği A.Ş. (TAV
Izmir) was founded.
• TAV Bilişim Hizmetleri A.Ş. (TAV IT) was founded.
• TAV was awarded the tender for Tbilisi International Airport in Georgia.
TAV Urban Georgia LLC. (TAV Georgia) was established to operate this
airport.
2006
• Operation and construction services were restructured under “TAV
Havalimanları Holding A.Ş.” (TAV Airports Holding Co.) and TAV İnşaat
(TAV Construction) as two separate companies.
• İzmir Adnan Menderes Airport International Terminal commenced service.
• Esenboğa Airport Domestic and International Terminal commenced
operation.
• TAV Özel Güvenlik Hizmetleri A.Ş. (TAV Security) was founded.
In 2005, TAV was
awarded the tender
for Tbilisi International
Airport in Georgia. TAV
Urban Georgia LLC.
(TAV Georgia) was
established to operate
this airport.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ TAV Airports
99
100
ˊ ˊ TAV Airpor ts
2007
• TAV Airports Holding was offered to the public.
• Tbilisi International Airport new passenger terminal commenced service.
• Batumi International Airport commenced operation.
• A refinancing agreement was signed to improve the terms of the existing
loans of TAV Esenboğa Yatırım Yapım ve İşletme A.Ş.
• TAV Batumi Operations LLC. was founded.
• TAV Airports was awarded the tender for the Monastir Habib Bourguiba
and Enfidha Zine El Abidine Ben Ali International Airports in Tunisia; TAV
Tunisie SA was established.
• Groundbreaking ceremony for the Tunisia Enfidha Zine El Abidine Ben Ali
International Airport was held.
• 40% minority shares of Havas were acquired; Havas then became a
wholly-owned subsidiary of TAV Airports Holding.
• TAV Airports Holding became the 100% owner of TAV Izmir and TAV
Esenboga.
• TAV Airports Holding was awarded the tender for the operation of Antalya
Gazipaşa Airport.
• The Hopa Terminal operated by Havas commenced service.
In 2007, TAV Airports
was awarded the
tender for the Monastir
Habib Bourguiba and
Enfidha Zine El Abidine
Ben Ali International
Airports in Tunisia;
TAV Tunisie SA was
established.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ TAV Airports
101
102
ˊ ˊ TAV Airpor ts
2008
• TAV Airports assumed operation of Tunisia’s Monastir Habib Bourguiba
International Airport.
• TAV Istanbul entered into a refinancing agreement to improve the terms of
existing loans.
• TAV Gazipaşa Yatırım, Yapım ve İşletme A.Ş. (TAV Gazipaşa) was founded
to operate the Antalya Gazipaşa Airport.
• TAV Tunisie SA signed a project finance loan agreement.
• TAV Airports won the tender for the operation of the Alexander the Great
International Airport in Macedonia’s capital Skopje and the St. Paul
the Apostle International Airport in Ohrid, Macedonia, as well as the
construction of the New Shtip Cargo Airport, which TAV Havalimanları
Holding also retains the optional right to operate; related concession
contracts were signed.
• TAV Airports acquired 6% of the share capital of TAV Urban Georgia LLC,
already 60% owned by TAV Airports; following the share transfer, TAV
Airports’ participation in TAV Urban Georgia LLC increased from 60% to
66%.
In 2008, TAV Airports
won the tender for
the operation of the
Alexander the Great
International Airport
in Macedonia’s capital
Skopje and the
St. Paul the Apostle
International Airport in
Ohrid, Macedonia, as
well as the construction
of the New Shtip Cargo
Airport.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ TAV Airports
103
104
ˊ ˊ TAV Airpor ts
2009
• The capital of TAV Havalimanları Holding A.Ş. was raised from
TL 242,187,500 to TL 363,281,250, all via cash capital.
• A contract was signed for the transfer of 15% of the minority shares of the
TAV Tunisie SA, previously under 100% ownership of TAV Havalimanları
Holding A.Ş., to International Finance Corporation (IFC), a World Bank
affiliate, for € 27,999,825 on June 30, 2009.
• On 07/13/2009 operations commenced at the Antalya Gazipaşa Airport,
whose operation right for 25 years belongs to TAV Gazipaşa Yatırım Yapım
ve İşletme A.Ş. - with 100% ownership of TAV Havalimanları Holding A.Ş.
• TAV Havalimanları Holding A.Ş. and the AL-RAJHI Holding Group
- established and active in the Kingdom of Saudi Arabia - signed a joint
venture contract on November 9, 2009.
• TAV Tunise SA, 85% of which is owned by TAV Havalimanları Holding,
started to operate the Enfidha Zine El Abidine Ben Ali International Airport.
The Company owns the operation rights of the airport until May 2047.
TAV Havalimanları
Holding A.Ş. and the
AL-RAJHI Holding
Group -established and
active in the Kingdom
of Saudi Arabia- signed
a joint venture contract
on November 9, 2009.
Tepe İnşaat
Annual Report 2009
2009 Operations
ˊ ˊ TAV Airports
105
106
ˊ ˊ TAV Airpor ts
A global brand in airport operations...
TAV’s story of success in airport operations, one the most challenging industries in the world, began in 1997 with the tender for the İstanbul Atatürk
Airport International Terminal and later went beyond the borders of Turkey.
TAV Havalimanları Holding, which has today become a success story written
with experience and creativity, was established as a joint venture of the Tepe
and Akfen groups after they won the 1997 tender. İstanbul Atatürk Airport
is one of the world’s first examples of airport operation projects undertaken
under the Build-Operate-Transfer (BOT) model. As the first concrete step in
TAV’s success story, this project also serves as Turkey’s modern face.
In a short period of time, thanks to its know-how, highly qualified human
resources and advanced technology, TAV became a great success story in
its industry and a global brand in airport construction projects, as well as
the totally new area of airport operations.
With its objective to live up to the requirements of the present day, TAV underwent restructuring in 2006 in line with its goals and organized its activities as “operations” and “construction” under TAV Havalimanları Holding (TAV
Airports) and TAV İnşaat (TAV Construction), respectively. TAV Havalimanları
Holding went public in February 2007 after this restructuring. The Company
continues to add to its accomplishments while working relentlessly in to
represent Turkey in the airport operations industry.
TAV Havalimanları Holding is keenly aware that the primary factor underneath its accomplishments is the intense and dedicated efforts of its employees. The Company has managed to become an expert airport operator,
as well as a human resources brand, thanks to the intense and passionate work of its young and dynamic staff comprised of the most qualified
professionals in Turkey. Supporting the development of its own employees
through extensive programs, TAV Airports is enjoying the advantages of its
distinguished standing due to its qualified human capital.
Thanks to its
know-how,
highly qualified
human resources
and advanced
technology, TAV
became a global
brand in airport
construction
projects, as well as
the totally new area
of airport operations.
Tepe İnşaat
Annual Report 2009
107
2009 Operations
ˊ ˊ TAV Airports
TAV Airports Holding Shareholding Structure 12/31/2009
TAV Havalimanları Holding A.Ş.
Share
%
Tepe İnşaat Sanayi Anonim Şirketi
94,890,027
26.12
Akfen Holding Anonim Şirketi
94,886,071
26.12
Sera Yapı Endüstrisi Ve Ticaret A.Ş.
16,101,375
4.43
Other non-floating shares
14,113,087
3.88
Other floating shares
143,290,691
39.44
Total
363,281,251
100.00
Other Floating
Shares
39.45%
Tepe İnşaat
San. A.Ş.
Other NonFloating Shares
Sera Yapı Endüstrisi
ve Ticaret A.Ş.
4.43%
3.88%
26.12%
Akfen Holding A.Ş.
26.12%
108
ˊ ˊ TAV Airpor ts
Airports in Figures...
İstanbul Atatürk Airport
International Terminal
Duration of Operation /
Expiration of Operation
15 years 6 months /
January 2021
2009 Passenger Traffic
18,363,739
2009 Commercial Flight Traffic
169,086
Domestic Terminal
15 years 6 months /
January 2021
11,393,645
95,395
Ankara Esenboğa Airport
16 years 7 months /
May 2023
1,097,143
10,146
Domestic Terminal
Duration of Operation/
16 years 7 months /
May 2023
4,987,983
41,147
İzmir Adnan Menderes Airport
8 years 4 months /
January 2015
1,667,353
13,137
Tepe İnşaat
Annual Report 2009
109
2009 Operations
ˊ ˊ TAV Airports
Antalya Gazipaşa Airport
Duration of Operation
25 years (After the
acquisition of the
operation permission)
Georgia Tbilisi International Airport
20 years /
February 2027
702,714
13,842
Georgia Batumi International Airport
20 years /
February 2027
69,936
1,806
Tunisia Monastir Habib Bourguiba International Airport
40 years /
May 2047
3,781,256
30,393
Tunisia, Enfidha Zine El Abidine Ben Ali
40 years
May 2047
Macedonia Skopje Alexander the Great
20 years
599,000
13,269
Macedonia Ohrid St Paul the Apostle
20 years
36,000
1,020
110
TAV İnşaat (TAV Construction)
Setting the standards of
perfection in terms of
functionality and esthetics,
the Company has undertaken
projects at airport construction
totaling 2,720,000 square
meters and has become an
international player today.
Tepe İnşaat
Annual Report 2009
With a vast business
volume in Northern
Africa and the
Gulf Region, TAV
Construction builds
airports, as well
as smart buildings
utilizing state-of-theart technology.
2009 Operations
ˊ ˊ TAV Construction
111
From its establishment under the umbrella of TAV in 2003, TAV Construction has become one of Turkey’s most remarkable and rapidly growing
companies. To date, the Company has a total of completed or ongoing
projects with a value of $10.2 billion.
The use of advanced technology is a major characteristic distinguishing
TAV Construction from other construction companies.
TAV Construction provides a unique example in its sector, through its innovative and modern approach and by closely monitoring technological
advances. Setting the standards of perfection in terms of functionality
and esthetics, the Company has undertaken a total of 2,720,000 square
meters of projects, including airports and has become a player on the
international stage.
TAV Construction shares its vast experience coming from projects not
only with Turkey but from around the world. The Company also provides
consultations for airport infrastructure, which has become an increasingly important issue in a world where distances shrink daily. Expanding
into Northern Africa and the Gulf Region, TAV Construction is building
airports and smart buildings with state-of-the-art technology.
TAV Construction has offices in Cairo, Doha, Dubai, Tripoli and Muscat.
In addition to airport construction, utilizing its experienced staff and vast
know-how, the Company also provides technical maintenance and repair
services, an area in severely limited supply globally.
112
TAV Construction in Figures
Cairo International Airport
Project Value
US$ 493 million (80% TAV Construction 20% Holding Company partnership)
Commencement Date
December 2004
Completion Date
December 2008
Job Description
200,000 square meter terminal building construction
(11 million passengers/year, World Bank financing)
Doha International Airport
Project Value
US$ 3,269 million
(65% Taisei, 35% TAV Construction partnership)
Commencement Date
March 2006
Completion Date
October 2011
Job Description
The construction of 330,000 square meter terminal building,
as well as three concourses
Emirates Financial Towers
Project Value
US$ 110 million
Commencement Date
June 2007
Completion Date
January 2010
Job Description
Construction of residential and commercial buildings of the
twin Emirates Financial Towers, each with 3B+G+25 stories
Majestic Tower in Sharjah - Al Mamzar (Sharjah, UAE)
Project Value
US$ 48 million
Commencement Date
July 2005
Completion Date
June 2009
Job Description
Construction of luxury residences in the 52-story Majestic
Tower in Al Mamzar with a total construction area of
63,000 square meters (Sharjah, UAE)
Sulafa Tower at the Dubai Marina (Dubai, UAE)
Project Value
US$ 99 million
Commencement Date
November 2006
Completion Date
June 2010
Job Description
Construction of the 79 story Sulafa Tower Luxury Residences at
the Dubai Marina with a total construction area of
133,000 square meters (UAE)
Tepe İnşaat
Annual Report 2009
2009 Operations
113
Dubai Marina 101 Hotel and Residence (Dubai, UAE)
Project Value
US$ 204 million
Commencement Date
January 2008
Completion Date
June 2011
Job Description
Construction of Marina 101 Hotel and Residence with a total
construction area of 156,000 square meters in Dubai Marina
(UAE)
Enfidha International Airport
Project Value
US$ 555 million
Commencement Date
June 2007
Completion Date
October 2009
Job Description
Airport construction (7 million passengers/year)
Libya Tripoli International Airport
Project Value
US$ 2,616 million (50% Odebrecht, 25% TAV Construction and
25% CCC partnership)
Commencement Date
September 2007
Completion Date
September 2009
Job Description
Two airport terminals built on a construction area of
175,000 square meters each (10 million passengers/year)
Libya Sebha International Airport
Project Value
US$ 279 million (50% TAV Construction and 50% CCC
partnership)
Commencement Date
December 2008
Completion Date
December 2010
Job Description
Airport construction (5 million passengers/year)
Oman Muscat International Airport - MC1 Package
Project Value
Commencement Date
US$ 1,170 million (50% TAV Construction and
50% CCC partnership)
May 2009
Completion Date
January 2012
Job Description
Infrastructure work of the Muscat International Airport
İstanbul Atatürk Airport Development, Expansion and Tri-generation Project
Project Value
US$ 89 million
Commencement Date
November 2008
Completion Date
December 2009
Job Description
The development and expansion of the airport terminal building
114
Future Projects and
Strategic Planning
Tepe İnşaat serves all
companies and individuals
aiming for maximum customer
satisfaction; it considers
all of these customers an
indispensable part of the value
chain that it creates. As such,
the Company forges ahead
toward its future goals with
confidence.
Tepe İnşaat
Annual Report 2009
Having attained its
sales targets for
the year 2009, Tepe
İnşaat will shape its
investment projects
for the coming
period by taking into
account the needs
of the market.
2009 Operations
ˊ ˊ Future Projects and Strategic Planning
115
The global economic crisis started out in the second half of the year 2008 in
developed economies and rapidly spread to other economies and as predicted,
its effects were aggravated in the past year. Therefore many world giants active
in various sectors were faced with new challenges. Private investors, who support and animate the international construction market, were among the worst
victims of the crisis. Accordingly, the 2008 crisis inflicted serious damages on
the construction market as well.
Trying to overcome this bottleneck with the least possible damage, construction
firms searched for alternatives to their present regions of activity and focused
on countries where liquidity was translated into investment and construction
projects. Firms strived to survive in the markets shrinking under the pressure of
the crisis and also to adapt themselves to the challenges associated with doing
business in new countries. Just like other actors in the Turkish construction
sector, the driving force of the Turkish economy, Tepe İnşaat revised its strategies with the onset of the crisis and focused on developing projects in the countries of North Africa, the Gulf Region and Central Asia, where liquidity exists
and new investments provide breathing space for the troubled construction
industry. Tepe İnşaat finished 2009 with important projects in its target countries
and enhanced its adaptation to the international construction market, which is
shaped by rapidly changing economic balances and political trends. This challenging experience has strengthened the economic and corporate structure of
Tepe İnşaat.
Tepe İnşaat not only had a successful year in terms of investment projects, but
also attained its sales targets for 2009 in the housing sector, despite the contraction in the housing market. In this regard, the Company decided to shape its
investment projects for the coming period by taking into account the needs of
the market. Aside from superstructure projects in which it has ample experience, it focused on various domestic and international projects where it can make
use of its vast know-how in infrastructure and industrial construction.
In line with its revised strategies, in 2010, Tepe İnşaat will concentrate on construction markets with growth potential. In the coming period it will significantly
expand its turnover volume, which it managed to preserve during the crisis.
Having attained its sales targets for the year 2009, Tepe İnşaat will shape its
investment projects for the coming period by taking into account the needs of
the market.
116
Human Resources
Distinguishing itself in the
rapidly developing
construction sector thanks to
the importance it attaches to
Human Resources, Tepe İnşaat
aims to further reinforce its
position as a corporation
preferred by its employees and
the rest of the highly qualified
workforce.
Tepe İnşaat
Annual Report 2009
With the belief that
corporate success
can only be attained
with well-informed,
experienced
and motivated
employees who
identify with their
profession, Tepe
İnşaat has utter
confidence in
the support and
productivity of
its staff.
2009 Operations
ˊ ˊ Human Resources
117
Tepe İnşaat’s modern Human Resources policy is built on success. This
policy is oriented toward recruiting highly qualified individuals and making the most productive use of this workforce.
With the belief that corporate success can only be attained with wellinformed, experienced and motivated employees who identify with their
profession, Tepe İnşaat has utter confidence in the support and productivity of its staff. The Company provides its employees with training opportunities, ensures that they join the system in a conscientious manner;
it thereby aims to attain and constantly improve modern quality standards and customer satisfaction in all stages of production. Tepe İnşaat
relentlessly invests in its personnel and strives to maximize employee
satisfaction.
Distinguishing itself in the rapidly developing construction sector thanks
to the importance it attaches to Human Resources, Tepe İnşaat aims to
further reinforce its position as a corporation cherished by its employees
and the rest of the highly qualified workforce.
With this target in mind, the Human Resources management attaches
utter importance to the professional training of employees and works to
ensure that employees enhance their competences through corporate
experience and to create the most appropriate environment for them to
reach their career goals. Tepe İnşaat encourages the Human Resources
management to come up with innovative business practices.
As of year-end 2009, Tepe İnşaat had 465 employees - 398 males and
67 females. Approximately 50% of the employees hold a university or
higher educational degrees; 50% have been employed by Tepe İnşaat
for more than five years.
118
Gender Profile (%)
Education Profile (%)
Graduate
School 1%
College
44%
Elementary
School 20%
Junior
College 7%
Male
86%
Female
14%
High
School 28%
Age Profile (%)
Functional Profile (%)
Other Personnel
28%
41 and above
24%
20-30
32%
Technical Personnel
42%
31-40
45%
Administrative
Personnel
31%
Support Personnel
Breakdown (%)
Tenure Profile (%)
International
Projects 11%
15-35 years
17%
1-5 years
48%
5-15 years
35%
Support
Units 9%
Domestic
Contracting
Projects 40%
Domestic
Investment
Projects 24%
Head Office
16%
Tepe İnşaat
Annual Report 2009
2009 Operations
119
120
Occupational Safety,
Environment and Quality Policy
While actualizing its projects,
Tepe İnşaat takes all the
necessary precautions to
protect natural resources,
minimize waste volume,
prevent the pollution of land,
air and water and boost its
recycling ratio.
Tepe İnşaat
Annual Report 2009
Since environmental
awareness is a
social obligation,
Tepe İnşaat employs
environmentally
friendly technology.
The Company
minimizes the
consumption
of energy and
natural resources
and undertakes
investments
to reduce
environmental
pollution.
2009 Operations
ˊ ˊ Human, Environment, Quality
121
Continuing to operate with the awareness that it is an inseparable part of
nature, Tepe İnşaat is sensitive to the issues of occupational safety and
the environment. While undertaking its projects, Tepe İnşaat takes the
necessary measures to preserve natural resources, minimize waste, prevent soil, air and water pollution and increase recycling. Strictly adhering
to all national and international laws, by-laws, rules and regulations, as
well as the conditions imposed by the trade organizations of which it is a
member, Tepe İnşaat closely monitors developments in the area of occupational safety and the environment and adjusts its activities accordingly.
Tepe İnşaat’s objective in this context is to achieve “zero occupational
accidents and injury.” In line with this objective, risk is eliminated at the
source with the active participation of the employees.
Tepe İnşaat’s ISO 14001 Environmental Standard, ISO 9001 Quality
Standard and OHSAS 18001 Occupational Safety and Employee Health
Standard certificates are indicators of Tepe İnşaat’s sensitivity in this regard. It strives for constant improvement on the issues of occupational
safety and environment.
Tepe İnşaat’s environmental policy is supported by the following
practices:
• Since environmental awareness is a social obligation, Tepe İnşaat
employs environmentally friendly technology,
• Minimizes the consumption of energy and natural resources,
• Use of recycling methods at every stage of the production process,
• Reduces waste and has successfully implemented a waste management plan and
• Undertakes investments to reduce environmental pollution.
122
A reformer with a lifelong dedication
to science, the nation and humanity:
İhsan Doğramacı
During his lifetime spanning
almost one hundred years,
İhsan Doğramacı dedicated himself
to children, young people and all
humanity. Facing many obstacles
in his effort to be successful, İhsan
Doğramacı shall be remembered
not only in Turkey but also in many
countries around the world, thanks
to his many contributions and the
health, education and science
institutions that he established.
1915
Doğramacı was born in 1915, in Erbil,
as the son of an Ottoman land owning family.
IN REMEMBRANCE OF
PROF. DR. İHSAN DOĞRAMACI
His life
İhsan Doğramacı came into the world 95 years
ago, in Erbil, Northern Iraq, which was then a
part of the Ottoman Empire. He was born as the
son of an influential Turcoman family; his father
was Doğramacızade Ali Paşa, the Mayor of Erbil.
His mother, İsmet Hanım, was the daughter of
Kırdarzade Mehmet Ali Bey, who had long served
as the Kerkük representative at the Ottoman
Parliamentary Assembly.
İhsan Doğramacı married with Ayser Süleyman
in 1942. Ayser Hanım was the niece of Ottoman
Grand Vizier Mahmut Şevket Paşa and the
granddaughter of Dağıstanlı Mehmet Fazıl
Paşa, Field Marshal of the Ottoman Army. Her
father, Hikmet Süleyman Bey, had served as the
Iraqi Prime Minister in 1930s. Ayser and İhsan
Doğramacı had three children: Şermin, Ali and
Osman.
Family values always had great importance in
Doğramacı’s life; however, the profession he
chose carried him away from Erbil, way beyond
the traditional pursuits of a wealthy land owner.
1938
Doğramacı graduated from the
İstanbul Faculty of Medicine.
After his education in a Turkish primary school
in Erbil, Doğramacı graduated from the Beirut
American College and İstanbul University’s
Faculty of Medicine. He became a pediatrician in
Ankara under the supervision of Professor Albert
Eckstein and worked as a research assistant at
Harvard University and at Washington University
in St. Louis.
Intellectual foundations of Bilkent University
In 1947, Doğramacı settled in Ankara with his
family. He had already started making plans to
establish non-profit, private higher education
institutions in Turkey, similar to those he had the
chance to observe in the US.
At the Ankara University’s Faculty of Medicine,
the young pediatrician rapidly climbed high
into academic and professional echelons and
became a professor of pediatrics in 1955. The
same year, he established the Children’s Health
Institute under the roof of Ankara University in
an impoverished neighborhood of Ankara. Until
1961, he added Turkey’s first junior colleges of
nursing, nutrition and dietetics, physical therapy
and rehabilitation and medical technology to
this institute. Later, he started to work toward the
1940
Doğramacı became pediatrician in Ankara under
tthe supervision of Professor Albert Eckstein.
He took office in the Baghdad Child Protection
Hospital and served for four years.
Academic Background
ˇˇ 1938 - Medical Doctor
İstanbul University, Istanbul
Specialist in Children’s Health and Diseases
ˇˇ 1940 - Specialist
Numune Hospital, Ankara
ˇˇ 1945 - 1946 Post-doctoral Research
(15 months)
Harvard University, the US
Massachusetts General Hospital, Boston, the
1945
Doğramacı went to the US and carried out
research in pediatrics and gained advanced
expertise at Harvard and Washington universities.
ˊˊ İhsan Doğramacı has been greatly admired in
all international organizations where he worked
and was elected president by a number of them.
He has always held a very special place both in the
international media and international conferences.
On behalf of Turks, we are proud of him. Those
who have been educated in the universities
established by Doğramacı are like seeds planted
in a field. They will grow and their reputation,
knowledge and culture will reach the sky.
haydar aliyev
Late president of Azerbaijan
US (6 months)
Boston Children’s Hospital, Boston, the
US (9 months)
ˇˇ 1946 - 1947 Post-doctoral Research
Washington University, St. Louis, the US
ˇˇ 1947 - 1949 Lecturer
Ankara University Faculty of Medicine, Ankara
ˇˇ 1949 - 1955 Associate Professor
Ankara University Faculty of Medicine, Ankara
ˇˇ 1955 - 1967 Professor
Ankara University, Ankara
ˇˇ 1967 - 1981 Professor
Hacettepe University, Ankara
ˇˇ 1976 - 1977 Visiting Professor
Paris Descartes (Paris V) University, France
ˊˊ Professor Doğramacı, you have devoted your
entire life and your whole family fortune to the
noble causes of child health and higher education.
You started with a two-room outpatient clinic in
an Ankara slum in 1954. It became the Ankara
University Institute of Child Health and the leading
Children’s Hospital in the country and today bears
your name. Professor Doğramacı, you are indeed
a model citizen of the world, such as the United
Nations would wish to find in every country.
kofı annan
Former Secretary-General of United Nations
1947
He was elected to membership of
the American Academy.
1949
He became an Associate
Professor at Ankara University
Faculty of Medicine.
establishment of Hacettepe Institute for Medicine
and Health Sciences as a second faculty of
medicine under the roof of the same university,
as well as the Junior College for Dentistry.
Doğramacı served as Rector of the Ankara
University between 1963 and 1967 and then as
Chairman of Board of Trustees at the Middle
Eastern Technical University.
A new university: Hacettepe
In 1967, Doğramacı united the Hacettepe
Faculty of Medicine and the junior colleges
under the Children’s Health Institute to create
a new university: Hacettepe University. Until
1975 he served as the rector of this university,
which today occupies a privileged position in
the Turkish higher education system. After the
termination of his term, he accepted a position as
a professor of pediatrics at Descartes University
in Paris.
In 1980, he was invited back to Turkey, to offer
consultancy during the preparation of a new law
to reform the Turkish higher education system.
1955
He was appointed president
of Hacettepe Children’s Health
Institute and became a
full professor.
Among his suggestions to reform the higher
education system was the establishment of a
Council of Higher Education (YÖK) reporting
directly to the President of the Republic. İhsan
Doğramacı was appointed the first president of
this agency at the end of 1981 and continued to
serve in this position until 1992.
After the reforms, the Turkish higher education
system took important steps forward. In 1980,
only 6.3% of school aged population was
enrolled in a higher education. Back then,
this rate attained 32% in Western Europe, 14%
in neighboring Syria and 22% in Greece and
Bulgaria. In the past 25 years this rate has
reached 38.2%. In terms of the number of articles
published in scientific journals, Turkey went
up from 45th to 18th place in the international
research ranking.
While leading the evolution of higher education
in Turkey, Doğramacı also attached great
importance to the education of the two universal
languages, i.e. music and the fine arts.
1961
1963
He established the Junior College of
Physiotherapy and Rehabilitation and the
Junior College of Dietetics and Nutrition.
He established the Hacettepe Faculty of Medicine
and Health Sciences providing education in
accordance with the Integrated Educational System
Model and later became its dean. He was appointed
rector of Ankara University.
He contributed to the establishment of the Erzurum
Atatürk University Trabzon Faculty of Medicine.
Professional Background
ˇˇ 1955 - 1981 President
Hacettepe Children’s Health Institute, Ankara
ˇˇ 1963 - Dean
Hacettepe Faculty of Medicine and Health
Sciences, Ankara University, Ankara
ˇˇ 1963 - 1965 Rector
Ankara University, Ankara
ˇˇ 1965 - 1967 President of the
Board of Trustees
Middle East Technical University, Ankara
ˇˇ 1967- 1975 Rector
Hacettepe University, Ankara
ˇˇ 1981- 1992 President
Council of Higher Education (YÖK)
ˊˊ A remarkable Turk indeed! This could almost
be the title of a biography of İhsan Doğramacı.
One could just as easily have described him as “a
remarkable person,” “a remarkable human being,”
or even perhaps “İhsan Doğramacı: one
of a kind.
donald j. johnston
Former Secretary-General, OECD
ˊˊ The many obstacles and setbacks in his
progress have tempered but not embittered him
and he has remained humane. Until Hacettepe
Hospital was opened, he saw patients in his
consulting rooms - not for money, but to stretch
a hand out to help people. His generosity and
sensitivity were widely known, as testified to by
colleagues, who benefited from this, mostly on the
occasion of the illness of their own children. He
not only treated them free of charge but would if
necessary pay the cost of their treatment abroad if
this was required.
sır horace phılıps
Former Brıtısh Ambassador to Ankara
1965
He became a member of
Middle East Technical University’s
Board of Trustees.
Bilkent University
The Constitution of 1982 regulated the
establishment of non-profit, private higher
education institutions by foundations. In 1984,
Doğramacı established Bilkent University, the
first foundation-owned university in Turkey; he
became the Chairman of Board of Trustees.
Bilkent University was followed by other
foundation-owned universities. Today, out of a
total of 139 universities, 94 belong to the state
and 45 are foundation-owned.
Doğramacı is the founder of five Turkish
foundations, which established numerous
hospitals and education institutions, including
Bilkent. Aside from these, İhsan Doğramacı
Family Health Foundation, established to assist
the World Health Organization and since 1983
has been rewarding successful individuals who
work in the field of family health.
A genuine citizen of the world, Doğramacı is also
fluent in German, Arabic, Persian, French and
English.
1967
He established Hacettepe University and
was appointed rector.
İhsan Doğramacı had the chance to participate
in the establishment of the World Health
Organization and in the preparation of its
charter in 1946, when he was just 31 years old.
After his return to Turkey, WHO asked him to
provide consultation for the establishment of
new schools of medicine and health sciences
in various regions of the world. Personally,
on location, Doğramacı pioneered in the
establishment of the Sherbrooke University in
Quebec, Canada; Brasilia University in Brazil; as
well as centers and schools of medicine in Ife,
Nigeria and Yaunde, Cameroun.
Léon Bernard Prize and “Health-for-All” Medal
İhsan Doğramacı, presided over the Turkish
Delegation at the World Health Assembly for six
years. In 1976, he took Office as President of the
European Region Countries and Vice President
of the Assembly and later served as member of
its Board and as a member of various advisory
councils at the World Health Organization. In
1981, the World Health Organization rewarded
Doğramacı the Léon Bernard Foundation Prize
and the “Health-for-All” Gold Medal in 1997 in
recognition of his outstanding service.
1973
He contributed to the
establishment of Karadeniz
University Trabzon Faculty of
Medicine.
1975
1978
He became the honorary rector of
the Hacettepe University.
He received the National Award
for Distinguished Service
from TÜBİTAK - Scientific and
Technological Research
Council of Turkey.
He was appointed
Professor of Pediatrics at
Paris Descartes University.
Honorary Doctorates
ˇˇ University of Glasgow (Scotland)
ˇˇ University of Nice (France)
ˇˇ University of Nebraska (the US)
ˇˇ University of Baghdad (Iraq)
ˇˇ University of Guayaquil (Ecuador)
ˇˇ Autonomous University of Santo Domingo
(Dominican Republic)
ˇˇ University of Ayn-Shams (Egypt)
ˇˇ Helsinki University (Finland)
ˇˇ Soka University (Japan)
ˇˇ Baku State University (Azerbaijan)
ˇˇ Azerbaijan Medical University (Azerbaijan)
ˇˇ De Montfort University (Great Britain)
ˇˇ Eastern Mediterranean University (Turkish
Republic of Northern Cyprus)
ˇˇ National Islamic University (India)
ˇˇ Rome-La Sapienza University (Italy)
ˇˇ Case Western Reserve University (the US)
ˇˇ Eleven Turkish universities, including
Anatolian University, Boğaziçi University,
İstanbul University and Marmara University.
ˊˊ The final word on him I leave to poet Robert
Burns. Doğramacı has many ranks, Doctor,
Professor, President, Chairman, Hoca Bey and so
on. Burns wrote: ‘The rank is but the coin’s stamp,
the man’s the gold, for all that!’ İhsan is a golden
man, a twenty-four carat golden man…
gavın c. arneıl
Professor Emeritus, University of Glasgow, Scotland
ˊˊ Professor Doğramacı is a unique person who
has devoted his entire life and his family wealth
to future generations and to the development
of opportunities for the training and higher
education of youth.
abdullah gül
President of Turkish Republic
1981
He was appointed President of the Council of Higher
Education (YÖK) and contributed to the establishment
of Kayseri Erciyes University Samsun Ondokuz Mayıs
University and Eskişehir Anadolu University.
1984
He established the Bilkent University and became
Chairman of the Board of Trustees.
He was rewarded Léon Bernard Foundation Prize.
One other institution in which Doğramacı
contributed actively is UNICEF, where he served
as Board member for many years. He was twice
elected president of the Program Committee and
served on the Executive Board three times.
In 1995, UNICEF honored him with the Maurice
Pate Prize. He served as president of the UNICEF
National Committee in Turkey from1958 until
2003 when he was appointed to the honorary
presidency of the committee.
In 1968, İhsan Doğramacı was elected president
of the International Pediatric Association, an
institution active in the field of children’s health.
He served as president and general director at
this institution for a quarter of a century and in
1992 was appointed honorary president for life.
While serving as the President of the UNICEF
Exective Board, Doğramacı became an Advisory
Board member of the International Children’s
Center in Paris and served from 1970 to 1984.
When the center was abolished in 1999 after 50
years in existence, he transferred it to Ankara
and personally undertook its presidency until
2006 when he became honorary president.
Doğramacı has authored numerous articles,
book chapters and books on medicine and health
sciences.
When it was proposed that he serve in the
positions of Foreign Minister and Prime Minister
of the Turkish Republic, he declined due to his
ideals that his obligation was to concentrate
exclusively on topics of health and education.
Books on the life and achievements of İhsan
Doğramacı were published in numerous
countries, in various languages. Prestigious
composers, particularly Adnan Saygun,
composed sonatas, symphonic pieces and
symphonies in homage to him.
1986
He received the Christopherson
Award of American Academy
of Pediatrics.
1995
He received the UNICEF Maurice
Pate Prize and the Soranos Award
for Science and Friendship.
1998
He was awarded the Peace, Justice
and Tolerance Prize from the
Council of Europe.
He received the Turkish Health and
Education Award for Merit.
Awards
ˇˇ 1978 National Award for Distinguished Service
from TÜBİTAK - Scientific and Technological
Research Council of Turkey
ˇˇ 1981 Léon Bernard Foundation Prize, WHO
ˇˇ 1986 Christopherson Award, American
Academy of Pediatrics
ˇˇ 1995 Maurice Pate Award, UNICEF
ˇˇ 1995 Soranos Award for Science and
Friendship (Greece)
ˇˇ 1998 Peace, Justice and Tolerance Prize
ˊˊ My friends and I decided that this young
professor, a world-renowned physician who was
knowledgeable about everything, spoke many
languages and knew the world, should be our
prime minister. I sent two of my physician friends
to him to propose this. The next day Doğramacı
disappeared from Ankara. He couldn’t accept
such an offer and he didn’t, because his only wish
was for the citizens of his country to enjoy better
medical care and for the country’s youth to receive
a better education.
süleyman demİrel
Ninth President of the Turkish Republic
(Council of Europe), (The other two laureates
were Franz Cardinal König and Simon
Wiesenthal.)
ˇˇ 1999 Health and Education Award for Merit
(Turkey)
ˇˇ 2000 Turkish Ministry of Foreign Affairs
Distinguished Service Award
ˇˇ 2004 Dr. Jushichiro Naito International
Childcare Award (Japan)
ˇˇ 2007 Turkish Grand National Assembly Honor
Prize
ˇˇ 2009 Lifetime Achievement Award of
Excellence for Global Health from the World
Federation of Public Health Associations
ˇˇ 2009 Award from the Islamic Organization for
Medical Sciences
ˊˊ Speaking a language so well, with such a
beautiful accent, is an indication of a very good
ear. If he had played an instrument, I am sure he
would have been a wonderful virtuoso.
İdİl bİret
State Artist
2000
2004
He received the Turkish Ministry of Foreign
Affairs Distinguished Service Award.
He was granted the Dr. Jushichiro Naito
International Childcare Award.
İhsan Doğramacı has received numerous
awards, medals and decorations; 26 universities
from 14 countries, including the US, Finland,
France, Great Britain, Italy, Japan and Egypt
have presented him with honorary doctorate
degrees. He was a member of national academies
of various nations and became an honorary
member of 23 pediatric associations across the
world.
Presidents of Azerbaijan, the Dominican
Republic, Estonia, Finland, France, Iran and
Poland honored him with their country’s highest
decoration in recognition of his distinguished
serve to humanity. The Turkish Grand National
Assembly, Egyptian Parliament and many other
national institutions rewarded Doğramacı with
their most prestigious awards and medals.
The Council of Europe rewarded him the Peace,
Justice and Tolerance Prize in 1998 at a ceremony
organized in Vienna.
Hocabey’s lifetime spanning almost a century
was full of the desire to serve children, young
people and all of humanity. Struggling to
overcome many challenges in his dedication to
serve, İhsan Doğramacı will be remembered,
not only in Turkey but also in many countries
around the world, thanks to his various services
and contributions and the health, education and
science institutions that he established.
2007
He was granted
Turkish Grand National Assembly
Honor Prize.
2009
He received the Lifetime Achievement Award of
Excellence in Global Health rewarded by World
Federation of Public Health Associations.
He was granted the Islamic Organization
Award for Medical Sciences.
Decorations and Medals
ˇˇ State Medal for Outstanding Merit (Turkey)
ˇˇ Order of Haydar Aliyev (Azerbaijan)
ˇˇ First Rank Order of Independence
(Azerbaijan)
ˇˇ Order of Homayoun First Class (Iran)
ˇˇ Medal of the Egyptian People’s Assembly
ˇˇ State Medal of Merit (Romania)
ˇˇ Gran Cruz Placa de Plata de la Orden
Heráldica de Cristóbal Colón (Dominican
Republic)
ˇˇ Gran Oficial, Orden del Mérito de Duarte,
Sánchez y Mella (Dominican Republic)
ˇˇ First Rank Commander of the Order of the
Lion of Finland
ˇˇ First Rank Commander of the Order of
Merit of Poland
ˇˇ Order of the Cross of St. Mary’s Land (Estonia)
ˇˇ Officier de la Légion d’Honneur (France)
ˇˇ WHO Health-For-All Gold Medal
ˇˇ Sevda Cenap And Music Foundation Honor
Award Gold Medal
ˇˇ Medal of Appreciation, Iraqi Ministry of
Higher Education and Scientific Research
ˇˇ Médaille de la Ville de Paris
ˊˊ I believe that by opening the way for
foundation-owned universities, İhsan Doğramacı
performed a very important service for Turkey’s
development. Perhaps today Turkey’s astonishing
growth and improvement are due to Bilkent,
which led the way as the first non-profit private
university.
prof. dr. halİl İnalcık
Bilkent University
ˊˊ First of all, people trusted İhsan Bey. They
knew that he was an honest, frank person. They
knew that he was serving the country. They would
see him struggling to make things happen.
rahmİ koç
Koç Holding Honorary President
136
Bilkent University
Bilkent University is a source
of pride, not only for the
Bilkent Group but also for
Turkey as a whole, with its
modern vision, high-quality
education and post-graduation
support units that it provides
to its students. Tepe İnşaat’s
main objective and mission is
to provide resources for the
Bilkent University and thus to
the nation’s education arena.
Tepe İnşaat
Annual Report 2009
The aim of Bilkent
University, the first
foundation-owned
private university
in Turkey, is to be
among the world’s
leading universities
in terms of cultural
and artistic activities
based on the quality
of its educational
programs, academic
research and a long
list of publications.
Foundations of Tepe
ˊ ˊ Bilkent University
137
Bilkent University was founded on October 20, 1984 by a joint resolution
by the İhsan Doğramacı Education Foundation, İhsan Doğramacı Health
Foundation and İhsan Doğramacı Science and Research Foundation.
The aim of this institution, the first foundation-owned private university in
Turkey, is to be among the world’s leading universities in terms of cultural
and artistic activities based on the quality of its educational programs,
academic research and a long list of publications. The name Bilkent
exemplifies the founder’s aim; it is an acronym of “bilim kenti” Turkish for
“city of science and knowledge.”
Preparations for the establishment of Bilkent University began as early
as 1967, with the purchase of a large tract of land to the west of Ankara.
In the late 1970s and early 80s the foundations undertook construction
efforts. The first buildings on the campus are those that now house the
University’s administrative offices, the Faculty of Engineering and the Library. These were followed by the construction of cafeterias, student dormitories, the School of English Language and the student union buildings
in rapid succession. As the University expanded and the student body
grew, the Faculties of Humanities and Literature, Economics, Administrative and Social Sciences, Management, Art, Design and Architecture,
Science, Music and Performing Arts, Law and Education, a concert hall,
fitness centers, a preschool and nursery, elementary, secondary and high
schools, new cafeterias, two health centers, the East Campus vocatio-
138
ˊ ˊ Bilkent Universit y
nal school buildings, classrooms and a building housing the computer
center followed.
Opening its doors in 1986, with 386 enrolled students, Bilkent University
today is a world-renowned educational center with nine faculties, two
undergraduate colleges and three vocational schools with 39 educational programs. At the university, 12,000 students receive a world class
education from a faculty of academicians from 40 different countries.
In line with its principle of establishment, Bilkent University arranged exchange programs with many select universities around the world, to give
its students an international vision and raise the quality of its education
to the level of the world’s successful and select universities. These institutions include the University of California, Georgia Institute of Technology, University of Maryland, Washington University and the University of
Michigan in the US; Essex University in England; Pforzheim and Konstanz Universities in Germany; Rome and Bocconi Universities in Italy;
Ecole Superieure de Commerce de Clarmont and Ecole Superieure de
Commerce de Lille Universities in France; McGill and Montreal Universities in Canada; Tilburg and Amsterdam Universities in the Netherlands;
Southern Denmark University in Denmark; Tel-Aviv University in Israel
and Waikato University in New Zealand.
Graduates of Bilkent University successfully represent their school in
the business world and in major educational institutions throughout the
world, thanks to the modern vision they acquire through their education
and their expert knowledge.
The Career Development and Placement Center, formed by the University in 1988 to help students with their post-graduation plans and the
actualization of such plans, established very strong ties between the students, graduates and the business world. The Career Development and
Placement Center has the distinction of being the first center in Turkey
established for this purpose.
Bilkent continues to be first in Turkey in terms of the number of international academic publications per faculty member and maintains its pioneering role in higher education.
Graduates of
Bilkent University
successfully
represent their
school in the
business world and
in major educational
institutions
throughout the
world, thanks to the
modern vision they
acquire during their
education and their
experience.
Tepe İnşaat
Annual Report 2009
Foundations of Tepe
139
140
ˊ ˊ Bilkent Universit y
Bilkent University in Figures
• Established in 1984 as Turkey’s first foundation-owned university;
education started in 1986.
• Its campus covers a total of five million square meters, three million of
which is afforested.
• Approximately a quarter of its 12,000 students receive scholarships.
• The school has more than 25,000 graduates.
• In the 2008 Student Selection Examination (ÖSS), 34 students ranked
in the top 100 in terms of the SAY-2 (quantitative weighted score) and
EA-2 (quantitative and qualitative equally weighted score) scores and
three out of the top ten students in terms of the quantitative score
chose enrollment at Bilkent University.
• Bilkent University has 39 two and four-year undergraduate programs
and 27 postgraduate programs.
• Each year, approximately 2,000 different classes are taught at nine
faculties, two junior colleges and three vocational junior colleges.
• Its academic staff is made up of approximately 1,000 people, one third
of whom come from almost 40 different countries.
• Computer labs have more than 4,000 computers available year-round,
24/7.
• There are student exchange agreements with more than 100 worldwide universities.
• Every year around 60,000 researchers and students visit its library,
which has a large collection of 400,000 books and 3,000 periodicals.
• Every year an estimated 500 well-established companies visit Bilkent University to promote themselves to students and attract job
candidates.
• The number of its student clubs tops 80.
• Since 1999, its students have undertaken Social Awareness Projects.
• Staffed by students, Radio Bilkent broadcasts on FM 96.6 MHz.
• Its dormitories have the capacity to accommodate 4,000.
• Health Center is open 24/7.
• Composed of around 100 musicians from 12 different countries, Bilkent Symphonic Orchestra gives over 70 concerts annually. As such,
Bilkent Symphonic Orchestra is Turkey’s “first private, academic, international artistic ensemble.”
Bilkent University
has 39 two and fouryear undergraduate
programs and
27 postgraduate
programs and
more than 25,000
graduates.
Tepe İnşaat
Annual Report 2009
Foundations of Tepe
141
TEPE İNŞAAT SANAYİ A.Ş.
VE BAĞLI ORTAKLIKLARI
CONSOLIDATED FINANCIAL STATEMENTS
AND AUDITORS’ REPORT AS OF
DECEMBER 31, 2009
INDEPENDENT AUDITOR’S REPORT
TO THE BOARD OF DIRECTORS OF
TEPE İNŞAAT SANAYİ A.Ş.
ANKARA
1. We have audited the accompanying consolidated balance sheet of Tepe İnşaat Sanayi A.Ş. (the
“Company”) and its subsidiaries (together the “Group”) as of 31 December 2009, and the consolidated statement of comprehensive loss, consolidated statement of changes in equity and consolidated
statement of cash flow for the year then ended, and a summary of significant accounting policies and
other explanatory notes.
Management’s Responsibility for the Consolidated Financial Statements
2. Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with International Financial Reporting Standards. This responsibility includes:
designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud
or error; selecting and applying appropriate accounting policies; and making accounting estimates that
are reasonable in the circumstances.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
6. The audited financial statements of Hyper Foreign Trade Holland N.V., a joint venture of the Company, prepared in accordance with International Financial Reporting Standards is not available and the
unaudited financial statements that are prepared based on statutory records are taken into account
in the accompanying consolidated financial statements. The total assets, total equity deficit and the
net loss of Hyper Foreign Trade Holland N.V. according to these financial statements amounts to USD
105,450, USD 4,976,925 and USD 237,043 respectively. Therefore no opinion could be formed regarding the effect of the financial position, off-balance sheet transactions and the result of operations of
Hyper Foreign Trade Holland N.V. on the accompanying consolidated financial statements.
7. In our opinion, except for the effects of such adjustments, if any, as might have been determined
to be necessary had we been provided with the audited financial statements of Hyper Foreign Trade
Holland N.V. to be used in the consolidation process, the consolidated financial statements give a true
and fair view of the financial position of the Group as of 31 December 2009, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting
Standards.
Without further qualifying our opinion we draw attention to the following matters:
8. As explained in Note 3, the accompanying consolidated financial statements are presented in US
Dollars. The Company’s and its major subsidiaries’ functional currency is Turkish Lira; except for TAV
Havalimanları Holding A.Ş. and TAV Yatırım Holding A.Ş., being EURO and US Dollars respectively. However, for the purpose of presentation, management has chosen to present its consolidated financial
statements in US Dollars by using procedures set out in Note 3 which are in accordance with International Accounting Standard No. 21 “The Effects of Changes in Foreign Exchange Rates”.
9. As explained in detail in Note 27, there is an ongoing dispute between the Company and Boru
Hatları ile Petrol Taşıma A.Ş. (“Botaş”), regarding the termination of the contracts that had been signed
for the construction of Baku-Tblisi-Ceyhan Pipeline Turkey portion. In May 2007, the Company applied
to International Arbitration for resolution of the dispute. As of the date of this report, litigations are
in progress. The ultimate outcome of the matter cannot presently be determined, and no provision is
set forth for the potential liabilities by the management in the accompanying consolidated financial
statements.
10. As explained in Note 41, the accompanying 2008 and 2007 consolidated financial statements have
been restated.
Ankara, 10 June 2010
DRT BAĞIMSIZ DENETİM VE
SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATSU
146
Tepe İnşaat Sanayi A.Ş. and its Subsidiaries
Consolidated Balance Sheet
As at 31 December 2009
(Amounts expressed in USD unless otherwise stated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Other financial assets
Trade receivables
Inventories
Other receivables and current assets
Total Current Assets
NON-CURRENT ASSETS
Trade receivables
Investments in associates
Goodwill
Property, plant and equipment
Investment property
Other intangible assets
Other non-current assets
Total Non-Current Assets
TOTAL ASSETS
31 December
2009
Restated
31 December
2008
Restated
1 January
2008
6
7
8a
10
11
96,634,026
5,596,323
184,092,342
110,502,085
265,995,477
662,820,253
59,477,456
12,678,259
190,271,017
89,179,576
289,263,408
640,869,716
155,677,212
5,644,040
151,395,619
130,667,621
258,907,884
702,292,376
8b
7
12
38
13
14
15
16
82,994,706
26,350,499
506,461
72,295,753
212,846,628
243,464,858
292,707,857
97,797,255
1,028,964,017
88,732,433
25,346,692
544,424
64,093,636
201,266,735
243,373,553
188,191,613
91,470,021
903,019,107
109,838,611
35,996,275
2,571,798
70,223,828
232,864,168
308,109,624
128,301,032
97,467,952
985,373,288
1,691,784,270
1,543,888,823
1,687,665,664
Notes
The accompanying notes form an integral part of these consolidated financial statements.
147
Tepe İnşaat
Annual Report 2009
Consolidated Balance Sheet
As at 31 December 2009
LIABILITIES AND EQUITY
31 December
2009
Restated
31 December
2008
Restated
1January
2008
100,658,700
214,044,160
3,008,004
33,542,732
91,249,218
1,099,867
79,195,639
3,819,450
526,617,770
89,183,053
266,878,366
2,429,122
25,907,752
62,061,134
1,315,275
83,347,975
3,084,737
534,207,414
81,270,996
181,923,676
3,362,332
137,951,638
635,437
110,416,082
697,519
516,257,680
19
20
21
25
23
26
24
8,384,628
547,396,159
10,323,178
6,677,001
48,173,058
18,889,204
87,008,652
726,851,880
3,942,600
409,481,653
5,313,532
5,047,709
29,854,118
29,114,077
66,001,357
548,755,046
14,832,996
475,546,620
5,994,944
5,879,250
35,946,218
43,128,612
73,234,550
654,563,190
28
588,166,968
(65,648,237)
556,396,507
(65,044,605)
639,785,703
(66,413,553)
29,761,379
5,226,981
12,555,638
26,290,018
(23,508,923)
(172,156,708)
400,687,116
29,631,494
3,957,477
21,720,218
31,847,096
(11,635,029)
(130,877,485)
435,995,673
38,638,863
3,830,913
28,739,959
(2,252,515)
(134,190,104)
508,139,266
37,627,504
24,930,690
8,705,528
438,314,620
460,926,363
516,844,794
1,691,784,270
1,543,888,823
1,687,665,664
Notes
CURRENT LIABILITIES
Trade payables
Borrowings
Obligations under finance leases
Other financial liabilities
Advances received
Provisions
Other payables and expense accruals
Current tax liabilities
Total Current Liabilities
NON-CURRENT LIABILITIES
Trade payables
Borrowings
Provision for employment termination benefits
Advances received
Deferred tax liabilities
Other non-current liabilities and expense accruals
Total Non-Current Liabilities
EQUITY
Share capital
Less: Treasury (self-owned) shares
Purchase of shares of entities under common
control
Legal reserves
Property revaluation reserves
Translation reserves
Hedging reserves
Retained earnings
Equity attributable to owners of the company
Minority interests
Total Equity
TOTAL LIABILITIES AND EQUITY
19
20
21
22
23
24
26
148
Consolidated Statement of Comprehensive Loss
For the year Ended 31 December 2009
Revenue
Cost of sales
Restated
1 January1 JanuaryNotes 31 December 2009 31 December 2008
30
917,037,955
1,147,321,313
31
(743,887,049)
(852,948,252)
Gross profit
Investment revenue
Other gains and losses
Share of the Group’s loss of associates
Marketing and sales expenses
Administrative expenses
Finance costs
Donations
32
33
12
34
35
36
29
Loss before taxation
Income tax expense
Loss for the period
26
173,150,906
294,373,061
20,394,367
(11,946,963)
(438,986)
(40,529,613)
(65,314,994)
(82,513,771)
(39,308,179)
15,419,503
10,405,528
(2,198,849)
(45,627,502)
(74,254,242)
(119,292,355)
(102,782,429)
(46,507,233)
(23,957,285)
(3,186,624)
(6,067,514)
(49,693,857)
(30,024,799)
2,648,836
28,006,000
Other comprehensive loss
Exchange differences arising on translation of foreign
operations
Exchange differences arising on translation to
presentation currency
Effective portion of change in fair value of cash
flow hedges
Revaluation of property and equipment
Income tax on other comprehensive loss
700,246
(114,533,443)
(14,991,186)
(9,068,662)
2,998,237
(14,543,786)
29,380
2,908,757
Other comprehensive loss for the period, net of tax
(17,712,529)
(98,133,092)
Total comprehensive loss for the period
(67,406,386)
(128,157,891)
149
Tepe İnşaat
Annual Report 2009
1 January31 December 2009
Restated
Loss attributable to:
Owners of the Company
Minority interests
(49,182,939)
(510,918)
(29,445,910)
(578,889)
Loss for the period
(49,693,857)
(30,024,799)
Total comprehensive loss attributable to:
Owners of the Company
Minority interests
(66,902,647)
(503,739)
(126,797,703)
(1,360,188)
Total comprehensive loss for the period
(67,406,386)
(128,157,891)
(285,113)
(285,113)
-
-
-
-
(285,113)
-
(65,044,605)
Treasury
(Self-owned)
shares
(9,127,889)
(9,127,889)
(9,223,096)
-
-
-
95,207
-
21,720,218
Property
revaluation
reserve
17,347
17,347
-
-
-
-
17,347
-
3,957,477
129,885
129,885
-
-
-
-
129,885
-
29,631,494
(5,557,078)
(5,557,078)
-
-
(1,320,152)
(95,244)
(4,141,682)
-
31,847,096
Translation
reserves
Retained
earnings
(11,873,894)
(11,873,894)
-
(11,822,893)
-
-
(51,001)
-
(42,644,783)
6,538,156
154,434
-
-
2,758,667
3,625,055
(49,182,939)
(11,635,029) (130,877,485)
Hedging
reserves
2,438,878
-
Total comprehensive loss for the year
-
2,438,878
-
Effective portion of change in fair value of
cash flow hedges, net of tax
Total other comprehensive loss
-
Exchange differences arising on translation
to presentation currency
2,438,878
-
556,396,507
Exchange differences arising on translation
of foreign operations
Translation difference
Other comprehensive (loss)/income
Loss for the year
Total comprehensive (loss) for the year
Balance at 31 December 2008 restated
Share capital
Purchase
of shares of
entities under
Legal
common
reserves
control
(503,739)
7,179
-
(170,056)
-
(14,587)
191,822
(510,918)
24,930,690
Minority
interests
Total
(67,406,386)
(17,712,529)
(9,068,662)
(11,992,949)
(1,320,152)
2,648,836
2,020,398
(49,693,857)
460,926,363
150
Consolidated Statement of Changes in Equity
-
Changes in minority interests
Dividend distributions
(65,648,237)
-
-
-
-
-
(318,519)
12,555,638
-
(36,691)
-
-
-
Property
revaluation
reserve
5,226,981
-
-
-
1,252,157
-
-
29,761,379
-
-
-
-
-
-
Purchase of
shares of entities under
Legal
common
reserves
control
26,290,018
-
-
-
-
-
-
Translation
reserves
(23,508,923)
-
-
-
-
-
-
Hedging
reserves
(172,156,708)
-
2,617,717
-
(1,252,157)
-
-
Retained
earnings
588,166,968
-
Change in group structure
Balance at 31 December 2009
-
Issue of share capital of affiliates
29,331,583
Transfers to legal reserves
Issue of ordinary shares
Share
capital
Treasury
(Self-owned)
shares
37,627,504
(152,472)
3,313,521
5,212,451
-
4,827,053
-
Minority
interests
Total
438,314,620
(152,472)
5,894,547
5,212,451
-
4,827,053
29,013,064
Tepe İnşaat
Annual Report 2009
151
15,265,060
15,265,060
-
-
-
-
15,265,060
-
(66,413,553)
(6,728,831)
(6,728,831)
(122,992)
-
-
-
(6,605,839)
-
28,739,959
Property
revaluation
reserve
(880,528)
(880,528)
-
-
-
-
(880,528)
-
3,830,913
(9,066,866)
(9,066,866)
-
-
-
(185,779)
(8,881,087)
-
38,638,863
-
-
-
-
-
Hedging
reserves
-
34,099,611 (11,635,029)
34,099,611 (11,635,029)
-
- (11,635,029)
4,262,595
36,443,362
(6,606,346)
-
(2,252,515)
Translation
reserves
(578,889)
8,705,528
Minority
Interests
(781,299)
-
-
-
1,173,084
(797,288) (1,360,188)
28,648,622
152,372
-
-
(9,424,667)
37,920,917 (1,954,383)
(29,445,910)
(134,190,104)
Retained
earnings
(147,053,832)
-
Total comprehensive loss for the year
-
(147,053,832)
-
Effective portion of change in fair value of cash
flow hedges, net of tax
Total other comprehensive loss
-
Exchange differences arising on translation to
presentation currency
(147,053,832)
-
639,785,703
Exchange differences arising on translation of
foreign operations
Other comprehensive (loss)/income
Loss for the year
Total comprehensive (loss) for the year
Balance at 31 December 2007 restated
Treasury
Share (Self-owned)
capital
shares
Purchase
of shares of
entities under
Legal
common
reserves
control
Total
(128,157,891)
(98,133,092)
29,380
(11,635,029)
4,262,595
28,006,000
(118,796,038)
(30,024,799)
516,844,794
152
-
Transfers to retained earnings
Changes in minority interests
Dividend distributions
(65,044,605)
-
-
-
-
-
-
(13,896,112)
Treasury
(Self-owned)
shares
-
-
Legal
reserves
-
(78)
13,213
(679,840)
21,720,218 3,957,477
-
(290,910)
-
-
- 1,673,797
-
-
Property
revaluation
reserve
29,631,494
-
-
59,497
-
-
-
-
Purchase of
shares of entities
under common
control
31,847,096
-
-
-
-
-
-
-
Translation
reserves
-
4,661,282
468,331
679,840
(1,699,546)
-
-
Retained
earnings
(11,635,029) (130,877,485)
-
-
-
-
-
-
-
Hedging
reserves
556,396,507
-
-
Transfers to legal reserves
63,664,636
Issue of share capital of affiliates
Issue of ordinary shares
Share
capital
24,930,690
(289,347)
(4,370,294)
19,853
-
25,749
22,199,389
-
Minority
interests
Total
460,926,363
(289,347)
-
560,894
-
-
22,199,389
49,768,524
Tepe İnşaat
Annual Report 2009
153
154
Consolidated Statement of Cash Flow
For The Year Ended As At 31 December 2009
Notes
1 January31 December
2009
2008
(49,693,857)
(30,024,799)
Cash flows from operating activities
Loss for the year
Income tax expense recognized in profit or loss
26
Finance costs recognized in profit or loss
Investment revenue recognized in profit or loss
(Gain) on sale or disposal of property, plant and equipment
33
(Gain)/loss on sale or disposal of available for sale investments
Net foreign exchange loss/(gain) on borrowings
3,186,624
6,067,514
82,219,586
61,659,894
(20,561,980)
(14,179,777)
(2,533,463)
(3,056,687)
(100,209)
(100,425)
3,192,590
58,890,110
Share of the Group on (gain)/loss of associates
12
438,986
2,198,849
Depreciation of property, plant and equipment
13
19,615,447
20,550,676
Impairment of property, plant and equipment
Amortization of other intangible assets
15
Depreciation of investment property
Impairment of non-current assets recognized in profit or loss
Impairment loss recognized on trade receivables
Loss/(Gain) from fair value adjustments on investment property
10,264,500
-
10,244,056
10,067,317
-
4,052,125
15,768
2,440,144
8-11
1,592,289
3,855,532
14
2,873,358
(10,658,761)
Provisions
Effect of foreign exchange translation
4,704,539
5,886,748
(6,278,896)
(19,239,944)
59,179,338
98,408,516
10,970,604
(27,002,224)
Movements in working capital
(Increase) in trade receivables
Decrease/(increase) in inventories
(21,322,509)
41,488,044
(Increase)/decrease in other receivables and other assets
11,339,407
(24,357,590)
(Decrease) in trade payables
15,645,046
(4,534,821)
(Decrease) in provisions
(Decrease)/increase in other payables and expense accruals
(Decrease) in advances taken
Cash provided from operations
Income taxes paid
Retirement obligation payments
Interest paid
Net cash provided by/(used in) operating activities
25
(260,401)
(218,752)
16,507,165
(8,330,748)
47,507,024
(81,982,605)
139,565,674
(6,530,180)
(6,549,242)
(11,627,315)
(3,319,415)
(3,175,124)
(58,144,180)
(21,046,554)
71,552,837
(42,379,173)
155
Tepe İnşaat
Annual Report 2009
Consolidated Statement of Cash Flow
For the year Ended as at 31 December 2009
2009
Restated
2008
Interest received
19,014,411
13,970,595
Payments for acquisition of subsidiary
(6,843,336)
-
Payments to acquire other financial assets
(3,504,559)
(7,847,625)
Notes
Cash flows from investing activities
Dividends received from other equity investments
32
1,379,957
1,195,384
Payments for property, plant and equipment
13
(41,162,026)
(36,491,765)
6,632,727
6,134,696
Payments for investment property
14
(1,974,206)
(413,790)
Payments for intangible assets
15
(112,602,873)
(59,922,549)
Proceeds on disposal of property, plant and equipment
Proceeds on disposal of other intangible assets
Net cash used in investing activities
1,702
9,609
(139,058,203)
(83,365,445)
Cash flows from financing activities
Capital increase
Proceeds on issue of share capital of affiliates
Dividend distribution
29,013,064
49,768,524
4,827,053
22,199,389
(152,472)
(289,347)
5,212,451
560,894
Changes in minority interest
5,894,547
-
Proceeds from borrowings
564,001,387
514,703,032
Repayment of borrowings
(504,394,801)
(521,615,445)
104,401,229
65,327,047
Net increase/(decrease) in cash and cash equivalents
36,895,863
(60,417,571)
Cash and cash equivalents at the beginning of year
59,477,456
155,677,212
260,707
(35,782,185)
96,634,026
59,477,456
Net cash generated by financing activities
Effect of foreign exchange translation
Cash and cash equivalents at the end of the year
6
156
1. GENERAL INFORMATION
Bilkent Holding A.Ş. has been founded by Bilkent University, which itself is a legal entity established by
Turkish Law. The purpose is to aid the financing of the Bilkent University. Companies, in which Bilkent
Holding is directly and/or indirectly the major shareholder, transfer the funds generated from their
operations to Bilkent University in order to support the University. Such funds are transferred in the
form of donations. Tepe İnşaat Sanayi A.Ş. (the “Company”), which also is a subsidiary of Bilkent
Holding A.Ş., transfers its funds to Bilkent University as donations.
Tepe Group formed under Tepe İnşaat Sanayi A.Ş., provides services at various sectors. The main
approach of the Group is to fully integrate various companies which deal with such areas as
infrastructure, construction, construction materials, doors, frames, kitchens and furniture. In addition
to construction sector Tepe Group is active in establishment and management of shopping, sports and
entertainment centers, establishment of security systems and services. The leading company of Tepe
Group is Tepe İnşaat Sanayi A.Ş. which is a construction firm that undertakes projects for public and
private sectors. The Company builds, sells residences and rents shopping malls. Usually such activities
are made by land development. The address of the Company’s registered office is Beytepe Köyü Yolu
No:5 06530 Bilkent, Ankara.
One of the significant consolidated subsidiary is Tepe Mobilya Sanayi Tic. A.Ş. which was the Tepe
Group’s first company when it was established in 1969. Tepe Mobilya Sanayi Tic. A.Ş. designs and
produces modular furniture for various spaces and customer needs and preferences, including home
and office furniture, bath and kitchen cabinets and inset cupboards for distribution and sale in stores
and by its licensed dealers both in Turkey and abroad. In addition to standard production, architectural
staff is capable of undertaking the design, decoration and furnishing of large projects such as business
centers, conference halls, health facilities, banks and hotels.
Tepe Home Mobilya ve Dekorasyon Ürünleri Tic. A.Ş., which is one of the significant consolidated
companies, is Turkey’s first furniture and accessory products hypermarket chain designed to serve
Turkey’s needs for modern working and living spaces.
The first outlet was established at Ankara Bilkent in 1998, and the chain now includes outlets in
İstanbul Kartal, Yeşilköy,Ankara, Gaziantep, Adana, İzmit, Bursa, Denizli and Bodrum.
Tepe Home Mobilya ve Dekorasyon Ürünleri Tic. A.Ş.’s products and services include all kinds of
furniture, bath room accessories, kitchen products, home fabrics, lighting fixtures and gift items, plus
alternative payment plans, post-sales services.
Tepe Emlak İnşaat Yat. A.Ş. was established in 1996 for property appraisal and management of real
estates. The main operations of Tepe Emlak are preparation of investment plans, land development
and planning, preparing the architectural, electrical, structural and mechanical designs as well as the
interior designs and decoration projects, leasing of the shops, stores and restaurants and managing
shopping centers, which are the main components of developing shopping centers.
Tepe İnşaat
Annual Report 2009
157
TAV Havalimanları Holding A.Ş. (formerly known as “TAV Havalimanları İşletme A.Ş”.) (“TAV”) which was
established in 1997 under the name of Tepe Akfen Vie Yatırım Yapım ve İşletme A.Ş. in Turkey for the
purpose of reconstructing the İstanbul Atatürk Airport (International Lines Building) and operating it for
a limited period of 66 months, has been accounted by using proportionate consolidation method in the
accompanying consolidated financial statements. On 7 August 2006, the company’s name has been
changed to TAV Havalimanları Holding A.Ş. The immediate parent and ultimate controlling party of TAV
and its subsidiaries are Tepe Group and Akfen Group. In 2006, Tepe Group and Afken Group
transferred their shares in TAV to IDB Infrastructure Fund L.P., Global Investment House KSCC and
Global Opportunistic Fund II Company BSCC, Babcock Brown Turkish Airports LLC, and Goldman
Sachs International with Share Sale and Purchase Agreements (“SSPA”). In February 2007, the Tepe
Group and Akfen Group sold some of their shares representing 18.4% in the registered capital of TAV
to public.
TAV Yatırım Holding A.Ş. (“TAV Holding”) and its subsidiaries which was established in 1 July 2005 for
the purpose of investing in the aviation and construction sector, has been accounted by using
proportionate consolidation method in the accompanying consolidated financial statements. The TAV
Holding Group’s operations comprise contracting and aviation activities. The TAV Holding Group has
two wholly owned subsidiaries TAV Tepe Akfen Yatırım İnşaat ve İşletme A.Ş. and Tav Havacılık A.Ş.
operating in contracting and aviation industries respectively.
Bilenerji Bilkent Enerji Üretim San. ve Tic. A.Ş. which began to produce and sell energy on a
commercial basis in 1995 has been accounted by using the equity method in the accompanying
consolidated financial statements.
Sports International Bilkent Fitness ve Spor Merkezi A.Ş. (“Sports International”) has been providing fitness and sports services since 1995. Sports International’s first club Ankara-Bilkent has been opened
in 1995. Other clubs are: İzmir-Mavişehir and İstanbul-Ataköy clubs in 1998, İstanbul-Şişli club in 2001
and İstanbul-Kadıköy club in 2004.
Tepe Servis ve Yönetim A.Ş.’s services include cleanup, technical operation, gardening, office support,
marketing, installation and maintenance of alarm systems. The company began to operate in 2008.
Bilintur Bilkent Turizm İnşaat ve Yatırım A.Ş. organized into two operating divisions-tourism and hotel
services, and catering services. Moreover, in 2009 the Company has signed an agreement with the
Ministry of Culture and Tourism regarding the management of the commercial areas of 56 museums
and ruins in Turkey. The agreement term is 8 years and the forecasted turnover is 436 Million TL for the
entire period of the agreement.
158
2. ADOPTION OF NEW AND REVISED STANDARDS
The following new and revised Standards and Interpretations have been adopted in the current period
and have affected the amounts reported and disclosures in these financial statements.
Standards affecting presentation and disclosure in 2009 financial statements
IAS 1 (as revised in 2007)
Presentation of Financial Statements
IAS 1(2007) has introduced terminology changes
(including revised titles for the financial statements)
and changes in the format and content of the
financial statements. The Group presents in the
consolidated statement changes in equity all owner
changes in equity, whereas all non-owner changes
in equity are presented in the consolidated
statement of comprehensive income.
Improving Disclosures about
Financial Instruments
(Amendments to IFRS 7
Financial Instruments: Disclosures)
The amendments to IFRS 7 expand the disclosures
required in respect of fair value measurements and
liquidity risk. The Group has elected not to provide
comparative information for these expanded
disclosures in the current year in accordance with
the transitional reliefs offered in these amendments.
Standards and Interpretations that are effective in 2009 with no impact on the 2009 financial
statements
The following new and revised Standards and Interpretations have also been adopted in these financial
statements. Their adoption has not had any significant impact on the amounts reported in these
financial statements but may impact the accounting for future transactions or arrangements.
Amendments to IFRS 2 Share-based
Payment-Vesting
Conditions and Cancellations
The amendments clarify the definition of vesting
conditions for the purposes of IFRS 2, introduce
the concept of ‘non-vesting’ conditions, and clarify
the accounting treatment for cancellations.
IFRS 8 Operating Segments
IFRS 8 is a disclosure Standard that has resulted in
a redesignation of the Group’s reportable
segments.
Amendments to IAS 32, ‘Financial Instruments:
Presentation’ Amendments relating to disclosure
at puttable instruments and obligations arising on
liquidation.
The revisions to IAS 32 amend the criteria for debt/
equity classification by permitting certain puttable
financial instruments and instruments
(or components of instruments) that impose on an
entity an obligation to deliver to another party a
pro-rata share of the net assets of the entity only
on liquidation, to be classified as equity, subject to
specified criteria being met.
159
Tepe İnşaat
Annual Report 2009
Amendments to IAS 39 Financial Instruments: Re- The amendments provide clarification on two
cognition and Measurement-Eligible Hedged Items aspects of hedge accounting: identifying inflation
as a hedged risk or portion, and hedging with
options.
Embedded Derivatives (Amendments to
IFRIC 9 and IAS 39)
The amendments clarify the accounting for
embedded derivatives in the case of a
reclassification of a financial asset out of the ‘fair
value through profit or loss’ category as permitted
by the October 2008 amendments to IAS 39
Financial Instruments: Recognition and
Measurement.
IFRIC 15 Agreements for the
Construction of Real Estate
The Interpretation addresses how entities should
determine whether an agreement for the
construction of real estate is within the scope of
IAS 11 Construction Contracts or IAS 18 Revenue
and when revenue from the construction of real
estate should be recognized.
IFRIC 16 Hedges of a Net Investment
in a Foreign Operation
The Interpretation provides guidance on the
detailed requirements for net investment hedging
for certain hedge accounting designations.
IFRIC 18 Transfers of Assets from
Customers (adopted in advance of effective
date of transfers of assets from customers
received on or after 1 July 2009)
The Interpretation addresses the accounting by
recipients for transfers of property, plant and
equipment from ‘customers’ and concludes that
when the item of property, plant and equipment
transferred meets the definition of an asset from
the perspective of the recipient, the recipient
should recognize the asset at its fair value on the
date of the transfer, with the credit recognized as
revenue in accordance with IAS 18 Revenue.
Improvements to IFRSs (2008)
In addition to the changes affecting amounts
reported in the financial statements described
above, the Improvements have led to a number
of changes in the detail of the Group’s accounting
policies-some of which are changes in terminology
only, and some of which are substantive but have
had no material effect on amounts reported. The
majority of these amendments are effective from 1
January 2009.
160
Standards and Interpretations that are issued but not yet effective in 2009 and have not been
early adopted
IFRS 3 ‘Business Combinations’ (2008)
IFRS 3 (2008) is effective for business combinations where the acquisition date is on or after the
beginning of the first annual period beginning on or after 1 July 2009. The main impact of the adoption
will be as follows:
a) to allow a choice on a transaction-by-transaction basis for the measurement of minority interests
(previously referred to as ‘minority’ interests) either at fair value or at the minority interests’ share of the
fair value of the identifiable net assets of the acquire.
b) to change the recognition and subsequent accounting requirements for contingent consideration.
c) to require that acquisition-related costs be accounted for separately from the business combination,
generally leading to those costs being recognized as an expense in profit or loss as incurred.
The Group will apply IFRS 3 (revised) prospectively to all business combinations from 1 January 2010 if
it is necessary.
IFRS 9 ‘Financial Instruments: Classification and Measurement’
In November 2009, the first part of IFRS 9 relating to the classification and measurement of
financial assets was issued. IFRS 9 will ultimately replace IAS 39 Financial Instruments: Recognition
and Measurement. The standard requires an entity to classify its financial assets on the basis of the
entity’s business model for managing the financial assets and the contractual cash flow characteristics
of the financial asset, and subsequently measure the financial assets as either at amortized cost or at
fair value. The new standard is mandatory for annual periods beginning on or after 1 January 2013.
The Group has not had an opportunity to consider the potential impact of the adoption of this
standard.
IAS 24 (2009) ‘Related Party Disclosures’
In November 2009, IAS 24 Related Party Disclosures was revised. The revision to the standard
provides government-related entities with a partial exemption from the disclosure requirements of IAS
24. The revised standard is mandatory for annual periods beginning on or after 1 January 2011.
The Group has not yet had an opportunity to consider the potential impact of the adoption of this
revised standard.
IAS 27 (2008) ‘Consolidated and Separate Financial Statements’
IAS 27 (revised) is effective for annual periods beginning on or after 1 July 2009. Accordance with
revised standards, change in the Group’s control of change which does not have any impact on
change in the ownership rate, increase or decrease should be accounted for Shareholder’s Equity.
The Group will apply IAS 27 (revised) prospectively to transactions with minority interests from
1 January 2010 if it is necessary.
Tepe İnşaat
Annual Report 2009
161
IFRIC 17 ‘Distributions of Non-cash Assets to Owners’
IFRIC 17 is effective for annual periods beginning on or after 1 July 2009. The interpretation provides
guidance on the appropriate accounting treatment when an entity distributes assets other than cash as
dividends to its shareholders.
interpretation.
IFRIC 19 ‘Extinguishing Financial Liabilities with Equity Instruments’
IFRIC 19 is effective for annual periods beginning on or after 1 July 2010. IFRIC 19 addresses only
the accounting by the entity that issues equity instruments in order to settle, in full or part, a financial
liability.
interpretation.
Improvements to IFRSs (2009)
As part of the Annual Improvement project, in addition to the amendments mentioned above, other
amendments were made to various standards and interpretations. These amendments are effective for
annual periods beginning on or after 1 January 2010.
The Group has not yet had an opportunity to consider the potential impact of the adoption of these
amendments.
IAS 32 (amendments) ‘Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements’
The amendments to IAS 32 and IAS 1 are effective for annual periods beginning on or after 1 February
2010. The amendments address the accounting for rights issues (rights, options or warrants) that are
denominated in a currency other than the functional currency of the issuer. Previously, such rights
issues were accounted for as derivative liabilities. However, the amendment requires that, provided
certain conditions are met, such rights issues are classified as equity regardless of the currency in
which the exercise price is denominated.
amendment.
IFRIC 14 (amendments) ‘Pre-payment of a Minimum Funding Requirement’
Amendments to IFRIC 14 are effective for annual periods beginning on or after 1 January 2011. The
amendments affect entities that are required to make minimum funding contributions to a defined
benefit pension plan and choose to pre-pay those contributions. The amendment requires an asset to
be recognized for any surplus arising from voluntary pre-payments made.
amendment.
162
IFRS 1 (amendments) ‘First-time Adoption of IFRS-Additional Exemptions’
Amendments to IFRS 1 which are effective for annual periods on or after 1 July 2010 provide limited
exemption for first time adopters to present comparative IFRS 7 fair value disclosures.
The amendments to IFRS 1 is not applicable to the Group as it is not a first time adoptor of IFRS.
3. SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”).
Basis of preparation
The financial statements have been prepared on the historical cost basis except for the revaluation of
certain non-current assets and financial instruments.
Basis of presentation of consolidated financial statements
The Company and its Turkish subsidiaries maintain their books of account and prepare their statutory
financial statements in accordance with accounting principles in the Turkish Commercial Code and tax
legislation. The accompanying consolidated financial statements are based on the statutory records,
with adjustments and reclassifications, for the purpose of fair presentation in accordance with IFRS.
One of the joint ventures of the Group maintains its books of account and prepares its statutory
financial statements in accordance with accounting principles of Dutch Commercial Code and tax
legislation. The financial statements of the joint venture are based on the statutory records, and the
audited financial statements of the joint venture prepared in accordance with IFRS is not available
therefore the unaudited financial statements prepared based on the statutory records are taken into
account in the accompanying consolidated financial statements.
Measurement and reporting currency
TAV Havalimanları Holding A.Ş. and its joint ventures (“TAV”) uses EUR and TAV Yatırım Holding A.Ş.
(“TAV Holding”) uses USD to a significant extent in, or has a significant impact on, the operations of the
TAV and TAV Holding and reflect the economic substance of the underlying events and circumstances
relevant to these groups. Therefore, TAV uses the EUR and TAV Holding uses USD in measuring items
in their financial statements in accordance with IAS 21 (“The Effects of Changes in Foreign Exchange
Rates”).
Tepe İnşaat
Annual Report 2009
163
In preparing the financial statements of the individual entities, according to IAS 21, transactions in
currencies other than entity’s functional currency (EUR and USD) are recorded at the rates of exchange
prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities
that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet
date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated
at the rates prevailing on the date when the fair value was determined. Any related exchange
component of that gain or loss is recognized in the translation reserve accounts under the equity.
According to IAS 21, EUR and USD balances of the balance sheet (except equity accounts) are
revaluated according to Turkish Central Bank EUR and USD buying rate (31 December 2009:
EUR 1 = TRY 2.1603, USD 1 = TRY 1.5057; 31 December 2008: EUR 1 = TRY 2.1408, USD 1 = TRY
1.5123); EUR and USD balances of the income statement are revaluated according to average rates in
the year (31 December 2009: EUR 1 = TRY 2.1508, USD 1 = TRY 1.5457; 31 December 2008: EUR 1
= TRY 1.8969, USD 1 = TRY 1.2976).
Capital and capital reserves are transferred from equity accounts with their historical nominal costs and
any related exchange component of that gain or loss is also recognized in capital translation gain-loss
accounts under equity.
Translation of consolidated financial statements to presentation currency (US Dollars):
The accompanying consolidated financial statements are presented in US Dollars. The Company’s and
its major subsidiaries’ functional currency is Turkish Lira. However, the Group’s management decided
to present its consolidated financial statements in US Dollars by using the following procedures of
International Accounting Standard No. 21 “The Effects of Changes in Foreign Exchange Rates”
(“IAS 21”):
(a) Assets and liabilities for each balance sheet presented (i.e., including comparatives) are translated
at the closing rate at the date of that balance sheet;
(b) Income and expenses for each income statement (i.e., including comparatives) are translated at
average exchange rates for the period; and
(c) All resulting exchange differences are recognized as a separate component of equity
Inflation accounting
The financial statements of the Company and its Turkish subsidiaries for the periods before 1 January
2006 were adjusted to compensate for the effect of changes in the general purchasing power of the
Turkish Lira based on IAS 29. Turkish Economy is accepted to come off its highly inflationary status
as of 1 January 2006. Based on this consideration, IAS 29 has not been applied in the preparation of
the consolidated financial statements since 1 January 2006. Amounts expressed in the measuring unit
current at 31 December 2005 were treated as the basis for the carrying amounts after 1 January 2006.
164
Consolidation
The details of the Company’s subsidiaries at 31 December 2009 and 2008 are as follows:
31 December 2009
Proportion
of ownership
interest
31 December 2008
Proportion of Proportion of
voting power
ownership
held
interest
Proportion of
voting power
held
Name of Subsidiary
Principal Activity
Betopan Yapı Malzemeleri
San.Tic.A.Ş.
Production of construction
materials
89.9 %
97.5 %
89.9 %
97.5 %
Bilan Bilkent Ankara Tepe Otel
İşletmeciliği A.Ş. (*) (former
Tepe Finansal Kiralama A.Ş).
Hotel administration
82.2 %
92.4 %
82.2 %
92.4 %
Bilintur Bilkent Turizm İnşaat
Yat. A.Ş.
Hotel administration, catering
and management of museums
and ruins
71.6 %
82.2 %
75.2 %
88.8 %
Sports Inter. Bilkent Fitness ve
Spor Merkezi A.Ş.
Fitness and health center
85.8 %
89.8 %
86.1 %
89.8 %
Tepe Emlak İnşaat Yat. A.Ş.
Property appraisal and management of real estates
76.4 %
76.9 %
76.4 %
76.9 %
Tepe Home Mobilya ve Dekoras- Sale of furniture and home decoyon Ürünleri Tic. A.Ş.
ration products
75.5 %
79.9 %
75.5 %
79.9 %
Tepe Mobilya Sanayi Tic. A.Ş.
Production, purchase and sale
of furniture
92.6 %
95.3 %
92.6 %
95.3 %
Tepe Prefabrik İnş. San. ve
Tic. A.Ş.
Production of prefabricated
containers
93.0 %
100.0 %
93.0 %
100.0 %
Tepe Savunma ve Güvenlik
Sist. San. A.Ş.
Security systems and services
87.9 %
100.0 %
87.9 %
100.0 %
Property management, support
and security services
94.2 %
100.0 %
94.2 %
48.0 %
(*) In 2008, within the article of association, principal activity and name of Tepe Finansal Kiralama A.Ş.
has been changed.
The details of the Company’s associates at 31 December 2009 and 2008 are as follows:
31 December 2009
Name of associate
Principal Activity
BilEnerji Bilkent Enerji Üretim
Production of electricity
Otoprodüksiyon San. ve Tic. A.Ş. from natural gas
Proportion
of ownership
interest
15.1 %
31 December 2008
Proportion of
Proportion
voting power of ownership
held
interest
33.3 %
18.1 %
Proportion of
voting power
held
33.3 %
The details of the Company’s jointly controlled and proportionally consolidated ventures at 31 December 2009 and 2008 are as follows:
31 December 2009
Proportion
of ownership
interest
31 December 2008
Proportion of
Proportion
voting power of ownership
held
interest
Proportion of
voting power
held
Name of associate
Principal Activity
Hyper Foreign Trade Holland N.V
Foreign trade
50.0 %
50.0 %
50.0 %
50.0 %
TAV Havalimanları Holding A.Ş.
Airport administration
26.3 %
26.7 %
26.3 %
26.7 %
TAV Yatırım Holding A.Ş.
Construction
47.4 %
47.4 %
47.4 %
47.4 %
Tepe İnşaat
Annual Report 2009
165
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled or jointly controlled by the Company (its subsidiaries). Control is achieved where the
Company has the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the
Group’s equity therein. Minority interests consist of the amount of those interests at the date of the
original business combination and the minority’s share of changes in equity since the date of the
combination. Losses applicable to the minority shareholders in excess of the interests of minority
shareholders in the subsidiary’s equity are allocated against the interests of the Group except to the
extent that the minority shareholders have a binding obligation, and is able to make an additional
investment to cover the losses.
Business combinations
The acquisition of subsidiaries and businesses are accounted for using the purchase method. The cost
of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets
given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for
control of the acquiree, plus any costs directly attributable to the business combination. The acquiree’s
identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under
IFRS 3, “Business Combinations” are recognized at their fair values at the acquisition date, except for
non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5,
“Non-Current Assets Held for Sale and Discontinued Operations”, which are recognized and measured
at fair value less costs to sell
Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the
excess of the cost of the business combination over the Group’s interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities recognized. If, after reassessment, the Group’s
interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities
exceeds the cost of the business combination, the excess is recognized immediately in profit or loss.
The interest of minority shareholders in the acquiree is initially measured at the non controlling
shareholders’ proportion of the net fair value of the assets, liabilities and contingent liabilities
recognized.
Investment in associates
An associate is an entity over which the Group has significant influence and that is neither a subsidiary
nor an interest in a joint venture. Significant influence is the power to participate in the financial and
operating policy decisions of the investee but is not control or joint control over those policies.
166
The results and assets and liabilities of associates are incorporated in these financial statements using
the equity method of accounting, except when the investment is classified as held for sale, in which
case it is accounted for under IFRS 5, “Non-current Assets Held for Sale and Discontinued
Operations”. Under the equity method, investments in associates are carried in the consolidated
balance sheet at cost as adjusted for post-acquisition changes in the Group’s share of the net assets
of the associate, less any impairment in the value of individual investments. Losses of an associate in
excess of the Group’s interest in that associate (which includes any long-term interests that, in
substance, form part of the Group’s net investment in the associate) are not recognized.
Where a group entity transacts with an associate of the Group, profits and losses are eliminated to the
extent of the Group’s interest in the relevant associate.
Interests in joint ventures
A joint venture is a contractual arrangement whereby the Group and other parties undertake an
economic activity that is subject to joint control that is when the strategic financial and operating policy
decisions relating to the activities require the unanimous consent of the parties sharing control.
Where a group entity undertakes its activities under joint venture arrangements directly, the Group’s
share of jointly controlled assets and any liabilities incurred jointly with other venturers are recognized
in the financial statements of the relevant entity and classified according to their nature. Liabilities
and expenses incurred directly in respect of interests in jointly controlled assets are accounted for on
an accrual basis. Income from the sale or use of the Group’s share of the output of jointly controlled
assets, and its share of joint venture expenses, are recognized when it is probable that the economic
benefits associated with the transactions will flow to/from the Group and their amount can be
measured reliably.
Joint venture arrangements that involve the establishment of a separate entity in which each venturer
has an interest are referred to as jointly controlled entities. The Group reports its interests in jointly
controlled entities using proportionate consolidation, except when the investment is classified as held
for sale, in which case it is accounted for under IFRS 5. The Group’s share of the assets, liabilities,
income and expenses of jointly controlled entities are combined with the equivalent items in the
consolidated financial statements on a line-by-line basis.
Where the Group transacts with its jointly controlled entities, unrealized profits and losses are
eliminated to the extent of the Group’s interest in the joint venture.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of
the net identifiable assets of the acquired subsidiary/associate at the date of the acquisition. Goodwill
on acquisitions of associates is included in ‘investments in associates’ and is tested for impairment
as part of the overall balance. Separately recognized goodwill is tested annually for impairment and
carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the
entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocations
made to those cash-generating units or groups of cash-generating units that are expected to benefit
from the business combination in which the goodwill arose.
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167
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced
for estimated customer returns, rebates, and other similar allowances.
Sale of goods
Revenue from sale of goods is recognized when all the following conditions are satisfied:
• The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
• The Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the entity; and
• The costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognized by reference to the stage of completion of
the contract. The stage of completion of the contract is determined as follows:
• Installation fees are recognized by reference to the stage of completion of the installation,
determined as the proportion of the total time expected to install that has elapsed at the balance sheet
date;
• Servicing fees included in the price of products sold are recognized by reference to the proportion of
the total cost of providing the servicing for the product sold, taking into account historical trends in
the number of services actually provided on past goods sold; and
• Revenue from time and material contracts is recognized at the contractual rates as labour hours are
delivered and direct expenses are incurred.
Revenue from construction contracts is recognized in accordance with the accounting policy outlined
below.
Dividend and interest revenue
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount.
Dividend revenue from investments is recognized when the shareholders’ rights to receive payment
have been established.
168
Rental income
Rental income from investment properties is recognized on a straight-line basis over the term of the
relevant lease.
Sports center services income
Sports center services income is recognized when services are provided. Group defers revenue for
collections from membership contracts until the services have been provided. There are no deferred
costs related to these revenues.
Aviation income
Aviation income is recognised based on the daily reports obtained from related airline companies for
terminal service income charged to passengers, as well as for ramps utilised by aircraft and checkin
counters utilised by the airlines.
Area allocation income
Area allocation income is recognised by the issuance of monthly invoices based on the contracts made
for allocated areas in the terminal.
Commission
The Group subcontracts the right to operate certain duty free operations and the catering services to
third parties. The third parties pay the Group a specified percentage of their sales for the right to
operate these concessions. The commission revenue is recognised based on the sales reports
provided from the subcontractor entities in every 2 to 3 days.
Construction contracts
Contract costs are recognized when incurred.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is
recognized only to the extent of contract costs incurred that are likely to be recoverable.
When the outcome of a construction contract can be estimated reliably and it is probable that the
contract will be profitable, contract revenue is recognized over the period of the contract. When it is
probable that total contract costs will exceed total contract revenue, the expected loss is recognized
as an expense immediately.
Variations in contract work, claims and incentive payments are included in contract revenue to the
extent that they have been agreed with the customer and are capable of being reliably measured.
The Group uses the ‘percentage-of-completion method’ to determine the appropriate amount to
recognize in a given period. The stage of completion is measured by reference to the contract costs
incurred up to the balance sheet date as a percentage of total estimated costs for each contract.
Costs incurred in the year in connection with future activity on a contract are excluded from contract
costs in determining the stage of completion. They are presented as inventories, prepayments or other
assets, depending on their nature.
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The Group presents as an asset the gross amount due from customers for contract work for all
contracts in progress for which costs incurred plus recognized profits (less recognized losses) exceed
progress billings. Progress billings not yet paid by customers and retention are included within “trade
and other receivables”.
The Group presents as a liability the gross amount due to customers for contract work for all contracts
in progress for which progress billings exceed costs incurred plus recognized profits (less recognized
losses).
The Group receives advances when the sales agreements are made for the real estate sales. Advances
and costs for off plan sales of real estate units are recognized in income statement when the unit is
ready for occupation and handed over to the buyer.
Retention receivables from contractors
The Group’s interim progress billings from its clients are subject to retention deductions, which vary,
based on the individual agreements. These balances are collected from the clients upon completion of
the contract at the end of the warranty period.
Retention payables to subcontractors
The Group’s interim progress billings to its sub-contractors may be subject to retention deductions,
which vary, based on the individual agreements. These payables are paid to subcontractors after they
complete the guarantee periods.
Non-current assets classified as held for sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use. This condition is
regarded as met only when the sale is highly probable and the asset (or disposal group) is available for
immediate sale in its present condition. Management must be committed to the sale, which should be
expected to qualify for recognition as a completed sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets
and liabilities of that subsidiary are classified as held for sale when the criteria described above are
met, regardless of whether the Group will retain a minority interest in its former subsidiary after the
sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of
their previous carrying amount and fair value less costs to sell.
Inventories
Inventories are stated at the lower of cost and net realizable value. Costs, including an appropriate
portion of fixed and variable overhead expenses, are assigned to inventories held by the method most
appropriate to the particular class of inventory, with the majority being valued on weighted average
basis. Net realizable value represents the estimated selling price less all estimated costs of
completion and costs necessary to make a sale. When the net realizable value of inventory is less than
cost, the inventory is written down to the net realizable value and the expense is included in statement
of income/(loss) in the period the write-down or loss occurred. When the circumstances that previously
caused inventories to be written down below cost no longer exist or when there is clear evidence of an
increase in net realizable value because of changed economic circumstances, the amount of the
write-down is reversed. The reversal amount is limited to the amount of the original write-down.
170
Undelivered real estate units are recognized as work in process and finished good inventories
regarding the construction phases.
Property, plant and equipment except lands which are stated in the balance sheet at their revalued
amounts, are carried at cost less accumulated depreciation and any accumulated impairment losses.
Land is not depreciated and carried at their revalued amounts less accumulated impairment.
Properties in the course of construction for production, rental or administrative purposes, or for
purposes not yet determined, are carried at cost, less any recognized impairment loss. Cost includes
professional fees capitalized in accordance with the Group’s accounting policy. Depreciation of these
assets, on the same basis as other property assets, commences when the assets are ready for their
intended use.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and
properties under construction, over their estimated useful lives, using the straight-line method. The
estimated useful lives, residual values and depreciation method are reviewed at each year end, with the
effect of any changes in estimate accounted for on a prospective basis.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as
owned assets or, where shorter, the term of the relevant lease.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognized in profit or loss.
Lands are stated in the balance sheet at their revalued amounts, being the fair value at the date of
revaluation, less any subsequent accumulated impairment losses. Revaluations are performed with
sufficient regularity such that the carrying amount does not differ materially from that which would be
determined using fair values at the balance sheet date.
Any revaluation increase arising on the revaluation of such land is credited in equity to the properties
revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset
previously recognized in profit or loss, in which case the increase is credited to profit or loss to the
extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation
of such lands is charged to profit or loss to the extent that it exceeds the balance, if any, held in the
properties revaluation reserve relating to a previous revaluation of that asset.
Intangible assets
Intangible assets acquired separately
Intangible assets acquired separately are reported at cost less accumulated amortization and
accumulated impairment losses. Amortization is charged on a straight-line basis over their estimated
useful lives. The estimated useful life and amortization method are reviewed at the end of each annual
reporting period, with the effect of any changes in estimate being accounted for on a prospective
basis.
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171
Computer software
Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are amortized over their estimated useful lives (three to
five years).
Costs associated with developing or maintaining computer software programmes are recognized as
an expense as incurred. Costs that are directly associated with the development of identifiable and
unique software products controlled by the Group, and that will probably generate economic benefits
exceeding costs beyond one year, are recognized as intangible assets. Costs include the software
development employee costs and an appropriate portion of relevant overheads.
Computer software development costs recognized as assets are amortized over their estimated useful
lives (not exceeding three years).
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination are identified and recognized separately from
goodwill where they satisfy the definition of an intangible asset and their fair values can be measured
reliably. The cost of such intangible assets is their fair value at the acquisition date.
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at
cost less accumulated amortization and accumulated impairment losses, on the same basis as
intangible assets acquired separately.
Investment property
Investment properties, which are properties, held to earn rentals and/or for capital appreciation are
measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
properties are stated at fair value, which reflects market conditions at the balance sheet date. Gains or
losses arising from changes in the fair values of investment properties are included in the profit or loss
in the year in which they arise.
Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its
disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in
profit or loss in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. For a transfer
from investment property to owner occupied property, the deemed cost for subsequent accounting is
the fair value at the date of change in use. If owner occupied property becomes an investment
property, the Group accounts for such property in accordance with the policy stated under property,
plant and equipment up to the date of change in use.
No assets held under operating lease have been classified as investment properties.
172
Impairment of non-financial assets
Assets that have an indefinite useful life, for example goodwill, are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. DHMİ
licence which has indefinite useful life is tested for impairment annually.An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that
suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
Service concession arrangements
TAV Esenboğa and TAV İzmir are bound by the terms of the Build-Operate-Transfer (“BOT”)
Agreements made with DHMİ. According to the BOT agreements, TAV Esenboğa and TAV İzmir have
guaranteed passenger fee to be received from DHMİ.
The agreements cover a period up to January 2015 for TAV İzmir and May 2023 for TAV Esenboğa.
A BOT agreement was executed between TAV Tbilisi and JSC on 6 September 2005 for the operations
of airport (both international, domestic terminals and parking-apron-taxi ways). The agreement covers
a period up to August 2027.
A BOT agreement was executed between TAV Tunisia and OACA on 18 May 2007, for the operation of
existing Monastir Habib Bourguiba Airport and new Enfidha Airport (International, domestic terminals
and parkingapron-taxi-ways). The concession periods of both airports will end in May 2047.
Under IFRIC 12 “Service Concession Arrangements” an operator recognises an intangible asset or
financial asset received as consideration for providing construction or upgrade services or other items.
Amortisation of the airport operation right is calculated on a straight line basis over the BOT periods of
each project from the date of commencement of physical construction of the terminal.
Intangible assets
The Group recognizes an intangible asset arising from a service concession agreement when it has a
right to charge for usage of concession infrastructure. Intangible assets received as consideration for
providing construction or upgrade services in a service concession agreement are measured at fair
value upon initial recognition. Subsequent to initial recognition the intangible asset is measured at cost
less accumulated amortisation and accumulated impairment losses.
The airport operation right as an intangible asset is initially recognised at cost, being the fair value of
consideration transferred to acquire the asset, which is the fair value of the consideration received or
receivable for the construction services delivered. The fair value of the consideration received or
receivable for the construction services delivered includes a mark-up on the actual costs incurred to
reflect a margin consistent with other similar construction work. Mark-up rates for TAV İzmir, TAV
Esenboğa, TAV Tbilisi, TAV Tunisia and TAV Gazipaşa are 0%, 0%, 15%, 5% and 0%, respectively.
Tepe İnşaat
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173
The consideration receivable for the construction services delivered includes direct costs of
construction and borrowing and other similar costs that are directly related to the construction of the
airport and related infrastructure.
Amortisation of the airport operation right is calculated on a straight line basis. For TAV Tunisia and TAV
Gazipaşa, no amortisation has been calculated as the construction of the airport is still in progress.
The estimated useful life of an intangible asset in a service concession arrangement is the period from
when it is available for use to the end of the concession period.
Financial assets
The Group recognizes the guaranteed passenger fee amount due from DHMİ as financial asset which
is determined by the agreements with TAV Esenboğa and TAV İzmir. Financial assets are initially
recognised at fair value. Fair value of financial assets are estimated as the present value of all future
cash receipts discounted using the prevailing market rate of instrument.
Accounting for operations contract (TAV İstanbul)
The costs associated with the operations contract primarily include rental payments and payments
made to enhance and improve Atatürk Domestic Airport Terminal (referred to as “ADAT”). TAV İstanbul
prepaid certain rental amounts and the prepayment is deferred as prepaid rent and is recognised over
the life of the prepayment period. The expenditures TAV İstanbul incurs to enhance and improve the
domestic terminal are recorded as prepaid development expenditures and are being amortised over the
life of the associated contract. Any other costs associated with regular maintenance are expensed in
the period in which they are incurred.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use
or sale, are added to the cost of those assets, until such time as the assets are substantially ready for
their intended use or sale. Investment income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalization.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
Taxation and deferred income taxes
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax
return. Therefore, provisions for taxes, as reflected in the accompanying consolidated financial
statements, have been calculated on a separate-entity basis.
Income tax expense represents the sum of the tax currently payable and deferred tax.
174
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported
in the income statement because it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that have been enacted or substantively enacted by the balance
sheet date.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases which is used in the computation
of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are
generally recognized for all taxable temporary differences and deferred tax assets are recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized. Such assets and
liabilities are not recognized if the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognized to the extent that it is probable that there will be sufficient
taxable profits against which to utilize the benefits of the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date. Since, the Group companies, except Tav Havalimanları Holding A.Ş. and Tav Yatırım Holding A.Ş. and their subsidiaries, transfer
the funds obtained as a result of their operations to Bilkent University in the form of donations as tax
deductible expense in profit and loss and it is not probable that sufficient taxable profits will be available;
provision is set for the deferred tax assets.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the balance sheet date. The measurement of deferred tax
liabilities and assets reflects the tax consequences that would follow from the manner in which the Group
expects, at the reporting date, to recover or settle the carrying amount of its assets and
liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same
taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate
to items credited or debited directly to equity, in which case the tax is also recognized directly in equity, or
where they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in calculating goodwill or determining the excess of the acquirer’s
interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over
cost.
Tepe İnşaat
Annual Report 2009
175
Retirement pay provision
Under Turkish law and union agreements, lump sum payments are made to employees retiring or
involuntarily leaving the Group. Such payments are considered as being part of defined retirement
benefit plan as per International Accounting Standard No. 19 (revised) “Employee Benefits” (“IAS 19”).
The retirement benefit obligation recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized actuarial gains and losses.
Leasing-the Group as lessee
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Assets held under finance leases are recognized as assets of the Group at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The
corresponding liability to the lesser is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so
as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are
charged to profit or loss, unless they are directly attributable to qualifying assets, in which case they
are capitalized in accordance with the Group’s general policy on borrowing costs.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the
term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating
lease are also spread on a straight-line basis over the lease term.
Financial assets
All financial assets are recognized and derecognized on a trade date where the purchase or sale of a
financial asset is under a contract whose terms require delivery of the financial asset within the
timeframe established by the market concerned, and are initially measured at fair value, net of
transaction costs except for those financial assets classified as at fair value through profit or loss,
which are initially measured at fair value.
Financial assets are classified into the following specified categories: financial assets as ‘at fair value
through profit or loss’ (FVTPL), ‘held-to-maturity investments’, ‘available-for-sale’ (AFS) financial assets
and ‘loans and receivables’.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset, or, where
appropriate, a shorter period.
Income is recognized on an effective interest basis for debt instruments other than those financial
assets designated as at FVTPL.
176
Financial assets at FVTPL
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset
is classified in this category if acquired principally for the purpose of selling in the short-term. Assets in
this category are classified as current assets.
Held-to-maturity investments
Investments in debt securities with fixed or determinable payments and fixed maturity dates that the
Group has the positive intent and ability to hold to maturity are classified as held-to-maturity
investments. Held-to-maturity investments are recorded at amortized cost using the effective interest
method less impairment, with revenue recognized on an effective yield basis.
Available-for-sale financial assets
Investments other than held-to-maturity debt securities and held for trading securities are classified as
available-for-sale, and are measured at subsequent reporting dates at fair value except
available-for-sale investments that do not have quoted prices in active markets and whose fair values
cannot be reliably measured are stated at cost and restated to the equivalent purchasing power. Gains
and losses arising from changes in fair value are recognized directly in equity, until the security is
disposed of or is determined to be impaired, at which time the cumulative gain or loss previously
recognized in equity is included in the profit or loss for the period. Impairment losses recognized in
profit or loss for equity investments classified as available-for-sale are not subsequently reversed
through profit or loss. Impairment losses recognized in profit or loss for debt instruments classified as
available-for-sale are subsequently reversed if an increase in the fair value of the instrument can be
objectively related to an event occurring after the recognition of the impairment loss.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not
quoted in an active market are classified as “loans and receivables”. Loans and receivables are
measured at amortized cost using the effective interest method less any impairment.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each balance
sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or
more events that occurred after the initial recognition of the financial asset, the estimated future cash
flows of the investment have been impacted. For financial assets carried at amortized cost, the amount
of the impairment is the difference between the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of trade receivables where the carrying amount is reduced through the use
of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance
account. Subsequent recoveries of amounts previously written off are credited against the allowance
account. Changes in the carrying amount of the allowance account are recognized in profit or loss.
Tepe İnşaat
Annual Report 2009
177
With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of
the impairment loss decreases and the decrease can be related objectively to an event occurring after
the impairment was recognized, the previously recognized impairment loss is reversed through profit
or loss to the extent that the carrying amount of the investment at the date the impairment is reversed
does not exceed what the amortized cost would have been had the impairment not been recognized.
In respect of available-for-sale equity securities, any increase in fair value subsequent to an impairment
loss is recognized directly in equity.
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly
liquid investments which their maturities are three months or less from date of acquisition and that are
readily convertible to a known amount of cash and are subject to an insignificant risk of changes in
value.
Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the transferred asset, the Group recognizes
its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group
retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognize the financial asset and also recognizes a collateralized borrowing for the
proceeds received.
Financial liabilities
Financial liabilities and equity instruments issued by the Group are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and an
equity instrument. An equity instrument is any contract that evidences a residual interest in the assets
of the Group after deducting all of its liabilities. The accounting policies adopted for specific financial
liabilities and equity instruments are set out below.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction
costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method, with interest expense recognized on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial liability, or, where
appropriate, a shorter period.
178
Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and only when, the Group’s obligations are
discharged, cancelled or they expire.
Derivative financial instruments and hedge accounting
The Group’s activities expose it primarily to the financial risks of changes in foreign exchange rates and
interest rates.
Derivative financial instruments are initially measured at fair value on the contract date, and are
remeasured to fair value at subsequent reporting dates.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges
of future cash flows are recognised directly in equity and the ineffective portion is recognised
immediately in profit or loss.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or
exercised, or no longer qualifies for hedge accounting. At that time, for forecast transactions, any
cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the
forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in equity is transferred to profit or loss for the period.
Provisions
Provisions are recognized when the Group has a present obligation as a result of a past event, and it is
probable that the Group will be required to settle that obligation, and a reliable estimate can be made
of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.
4. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINITY
Critical judgments in applying the entity’s accounting policies
Use of Estimates
The preparation of financial statements in conformity with International Financial Reporting Standards
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses during the period. Actual results could differ from
those estimates.
Tepe İnşaat
Annual Report 2009
179
Management periodically reviews the cost of certain inventories and their realizable value to assess for
potential impairment. The impairment calculation requires management to estimate future cash flows
expected to arise from the sale of inventories and the estimated selling price less estimate costs of
completion and costs necessary to make the sale.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the
balance sheet date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, is discussed below:
Revenue Recognition
The Group uses the percentage of completion method in accounting for its project contracts. Use of
the percentage of completion method requires the Group to estimate the proportion of work performed
to date as a proportion of the total work to be performed and the Management’s judgment that the
use of costs to date in proportion to total estimated costs provided the most appropriate measure of
percentage of completion.
Project cost estimates
The Group uses project managers to estimate the costs to complete construction contracts. Factors
such as escalation of material prices, labor costs and other costs are included in the project cost
estimates based on the Management’s best estimate.
Contract variations
Contract variations are recognized as revenues to the extent that it is probable that they will result in
revenue which can be reliably measured. This required the exercise of judgment by management based
on the prior experience, application of contract terms and relationship with the contract owner’s.
5. DIVIDENDS
Dividends receivable are recognized as income in the period when they are declared. The Group does
not recognize any dividends payable. As explained in detail on Note 29, the Group is transferring
revenues obtained as a result of their operations to Bilkent University as donations.
180
6. CASH AND CASH EQUIVALENTS
Cash on hand
Demand deposits
Time deposits
Other cash equivalents
31 December 2009
840,275
35,772,417
58,767,519
1,253,815
96,634,026
Restated
31 December 2008
635,084
24,497,724
34,094,931
249,717
59,477,456
As at 31 December 2009, the interest rates applicable to TRY time deposits are between 1%-11%
(2008: 6.5%-15%). As at 31 December 2009, the interest rates applicable to foreign currency time
deposits are between 0.01%-25% (2008: 1%-6.75%). As at 31 December 2009, maturity of time
deposits is between 1 to 34 days. (2008: 1 to 330 days).
Cash and cash equivalent in the amount of USD 145,878,578 (2008: USD 109,470,585) is separately
accounted for under ‘Other Assets’ as this balance is restricted from being used to fund continuing
operations and to settle any part of the Group’s liability.
Details of time deposits are as follows:
TRY
USD
EUR
QAR
OMR
31 December 2009
17,594,437
19,682,029
14,669,456
4,659,862
2,161,735
58,767,519
Restated
31 December 2008
5,467,712
16,539,389
12,016,049
71,781
34,094,931
31 December 2009
5,596,323
26,350,499
31,946,822
Restated
31 December 2008
12,678,259
25,346,692
38,024,951
7. OTHER FINANCIAL ASSETS
Current
Non-current
181
Tepe İnşaat
Annual Report 2009
a) Held for trading non-derivative financial assets (i)
b) Derivatives designated and effective as hedging instruments carried at fair value (ii)
c) Available for sale investments in unlisted securities (iii)
31 December 2009
3,188,694
Restated
31 December 2008
687,943
2,407,629
26,350,499
31,946,822
11,990,316
25,346,692
38,024,951
(i) Mainly composed of investment funds
(ii) Mainly composed of foreign currency forward contracts
(iii) The Group’s shares in its available for sale investments and unconsolidated subsidiaries as of
31 December 2009 and 2008 are as follows:
Company
Ankara Teknoloji Geliştirme Bölgesi Kurucu ve İşletici A.Ş.
Antepe Sağlık ve Turizm Hizmet Tic. Danış. A.Ş.
Batı Karadeniz Elektrik Dağıtım A.Ş.
Meteksan Matbacılık ve Teknik Sanayi ve Ticaret A.Ş.
Tepe United Kingdom PLC
BTA Havalimanları Yiyecek ve İçecek Hizmetleri A.Ş.
C.B.Spolka Ogzaniczona Odpowiedzia
(Tepe Akfen Reformer S.P.Zoo)
Ati Servicess SA
Meteksan Savunma Sanayi A.Ş.
Other
Provision for diminution in value of available for sale
investments
31 December 2009
31 December 2008
4,606,475
1,515,589
580,491
4,911,961
233,449
1,080,048
4,586,372
1,499,046
577,957
4,890,524
232,431
1,075,335
1,433,490
10,953,676
806,681
3,265,466
1,428,163
10,905,872
803,161
2,355,634
(3,036,827)
26,350,499
(3,007,803)
25,346,692
182
8. TRADE RECEIVABLES
a) Current trade receivables
Trade receivables
Retention receivables (*)
Notes receivables
Trade receivables from related parties (Note: 9)
Guaranteed passenger fee receivable from DHMİ (**)
Amounts due from customers under construction contracts (Note: 18)
Other trade receivables
Allowance for doubtful receivables (-)
b) Non-current trade receivables
Trade receivables
Retention receivables (*)
Notes receivables
Trade receivables from related parties (Note: 9)
Guaranteed passenger fee receivable from DHMİ (**)
Allowance for doubtful receivables (-)
31 December 2009
Restated
31 December 2008
75,135,166
15,761,134
8,206,010
6,374,058
8,231,409
91,382,773
1,933,737
13,571,169
10,017,892
8,595,438
77,623,364
2,026,098
(9,264,897)
184,092,342
72,565,722
757,544
(8,553,258)
190,271,017
31 December 2009
Restated
31 December 2008
26,500,832
10,346,968
7,461,269
800,073
50,654,804
(12,769,240)
82,994,706
22,118,910
19,547,175
704,445
980,924
58,100,001
(12,719,022)
88,732,433
(*) Retention receivables are the guarantees which are held by the employer by deducting from each
interim payment certificate with a ratio according to the construction contract. Retentions will be
released upon completion of construction projects.
(**) Guaranteed passenger fee receivable represents the remaining discounted guaranteed passenger
fee to be received from DHMİ according to the agreements made for the operations of Ankara
Esenboğa Airport and İzmir Adnan Menderes Airport as a result of IFRIC 12 application.
During the period, the Group transferred USD 2,913,851 (2008: USD 6,304,689) of trade receivables
to an unrelated entity. As part of the transfer, the Group provided the transferee a credit guarantee
over the expected losses of those receivables. Accordingly, the Group continues to recognize the full
carrying amount of the receivables and has recognized the cash received on the transfer as a secured
borrowing (see Note 20). At the reporting date, the carrying amount of the transferred short-term
receivables is USD 2,973,624 (2008: USD 5,540,747). The carrying amount of the associated liability is
USD 2,973,624 (2008: USD 5,540,747).
As of 31 December 2009, trade receivables of USD 248,100,138 (2008: USD 258,735,604) were
neither past due nor impaired.
183
Tepe İnşaat
Annual Report 2009
The average credit periods for construction operations, furniture production and sales, container
production and sales, and hotel and catering services are 70 days, 30 days, 30 days and 45 days
respectively (2008: 80 days, 60 days, 25 days, 45 days respectively) and no interest is charged on
the overdue trade receivables arising from these operations of the Group except hotel and catering
services in which interest is charged at 25% per annum. The average credit period for building material
sales and sport center service sales is between 30-45 days (2008: 15-30 days). For sport centre
service sales, no interest is charged on the trade receivables for the first 60 days from the date of the
invoice, thereafter, interest is charged at 25% per annum on the outstanding balance.
For building material sales starting from 5 days after maturity date of invoices, interest is charged at
25% per annum on the outstanding balance.
The average credit periods for airport administration services is 30 days with interest charge of %10 for
domestic currency receivables, and %3 for foreign currency receivables per annum on the outstanding
balance.
Collaterals received in relation to trade receivables that are neither past due nor impaired is as follows:
Guarantee letters
Mortgages
Cheques and notes
Other
31 December 2009
8,442,452
3,596,334
940,172
96,444
13,075,402
Restated
31 December 2008
8,732,420
5,121,338
1,062,099
83,538
14,999,395
As of 31 December 2009, trade receivables of USD 18,986,910 (2008: USD 20,267,846) were past
due but not impaired. These relate to a number of independent customers for whom there is no recent
history of default. The ageing analysis of these trade receivables are as follows:
Up to 3 months
3 to 6 months
Over 6 months
31 December 2009
6,979,849
2,676,870
9,330,191
18,986,910
Restated
31 December 2008
9,028,360
1,010,195
10,229,291
20,267,846
Collaterals received in relation to trade receivables that are past due is as follows:
Guarantee letters
Mortgages
Cheques and notes
31 December 2009
1,776,190
12,220,230
309,944
14,306,364
Restated
31 December 2008
738,885
7,873,107
27,800
8,639,792
184
The provision for trade receivables is provided based on estimated irrecoverable amounts from the sale
of goods and services given, determined by reference to past default experience. Movements in the
allowance for current doubtful receivables during 2009 and 2008 are as follows:
Balance at the beginning of the year
Impairment losses recognized on receivables
Amounts recovered during the year
Foreign currency exchange differences
Closing balance
(8,553,258)
(784,750)
128,240
(55,129)
(9,264,897)
Restated
(6,194,761)
(5,009,328)
708,347
1,942,484
(8,553,258)
Movements in the allowance for non-current doubtful receivables during 2009 and 2008 are as follows:
Closing balance
(12,719,022)
(50,218)
(12,769,240)
(17,972,222)
(157,199)
5,410,399
(12,719,022)
As of 31 December 2009, trade receivables of USD 22,034,137 (2008: USD 21,272,280) were
impaired. Major portion of these trade receivables have been outstanding for more than one year.
9. RELATED PARTY TRANSACTIONS
The immediate parent and ultimate controlling party respectively of the Group is Bilkent Holding A.Ş..
Transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not disclosed in this note.
Trade receivables from related parties arise mainly from sale transactions and these receivables are
unsecured in nature and bear no interest. Other receivables from related parties arise mainly from
financing transactions which are unsecured in nature and bear interest regarding the current market
conditions.
Trade payables to related parties arise mainly from purchase transactions and these payables are
unsecured in nature and bear no interest. Other payables to related parties arise mainly from financing
transactions which are unsecured in nature and bear interest regarding the current market conditions.
Details of transactions between the Group and other related parties are disclosed below.
Balances with related parties
Akfen Holding A.Ş.
ATÜ Georgia LLC
Bilen Bilkent Enerji Yatırımları A.Ş.
Bilkent Üniversitesi
Bilkent Holding
Cyprus Airport Services Ltd.
Kirazlı Konutları Adi Ortaklığı
LLC Sabha Int. Airport Project
Meteksan Matbaacılık ve Teknik San. Tic. A.Ş.
ODTC JV
Sera Yapı Endüstri ve Tic. A.Ş.
Sky Oryx
TAV Gözen havacılık İşletme Ticaret A.Ş.
Knauf İnşaat ve Yapı Elemanları San. ve Tic. A.Ş.
Other
31 December 2009
Receivables
Current
Non Current
Trading Non Trading
Trading Non Trading
935,896
1,498,244
614,480
563,937
2,302,798
897
180,288
8,471
160,186
578,420
862,579
571,379
381,839
16,249
515,087
221,653
163,166
89,386
419,164
117,820
6,374,058
2,463,871
800,073
563,93
Tepe İnşaat
Annual Report 2009
185
Akfen Turizm Yat. ve İnş. A.Ş.
ATU (Akfen Tepe Unimetal) Turizm İşletmeciliği A.Ş.
CAS
Bilen Bilkent Enerji Yatırımları A.Ş.
Dilek İnşaat ve Ticaret A.Ş.
Kirazlı Konutları Adi Ortaklığı
LLC Sabha Int.
ODTC JV
Riva İnş.Tur. Tic. İşl. Paz. A.Ş.
TAV Gaziantep Otopark Yapım yatırım ve İşletme A.Ş.
TAV Gözen havacılık İşletme Ticaret A.Ş.
TAV Tiflis
Tepe Akfen Reform Ltd.
Tepe Stroi
Tepe Yorum Adi ortaklığı
Other
Restated 31 December 2008
Receivables
Current
Non Current
Trading
Non Trading
Trading Non Trading
473,956
19,900
253,091
1,046,550
150,097
516,746
477
- 14,655,973
6,283,615
449,761
187,385
725
386,549
648,260
112,585
36,309
2,004,814
594,375
370,411
96,586
597,730
154,732
3,025,799
141,559
320,488
245,287
328,153
461,733
34,458
10,017,892
4,741,499
980,924 17,857,789
186
Akfen Turizm Yat. ve İnş. A.Ş
Ati Servicess SA
ATÜ Georgia LLC
Bilkent Enerji Üretim Otoprodüksiyon San. ve Tic. A.Ş.
Bilkent Sigorta Aracılık Hizmetleri A.Ş.
CCC & TAV JV
IBS Sigorta
İhsan Doğramacı Vakfı
LLC Sabha Int. Airport Project
Meteksan Savunma
Sky Oryx
TGS Yer Hizmetleri A.Ş.
Tepe Erkut Adi İş Ortaklığı
Tepe Knauf İnşaat ve Yapı Elemanları San.
Other
31 December 2009
Payables
Current
Non Current
Trading Non Trading
Trading Non Trading
1,741
361,422
7,755,666
634,361
8,924,193
261,016
3,614,002
284,922
657,216
72,956
2,299,465
1,178,613
6,248,013
1,675,961
743,840
2,414,418
89,787
1,867,608
18,053
2,730,129
440,990
48,999
1,928,959
3,574,995
11,566
40,591
72,979
91,709
71
7,800,678
7,436,557
743,911
32,063,095
Tepe İnşaat
Annual Report 2009
187
Sky Oryx
Tepe Orman Ürünleri
Other
Ati Servicess SA
Bilkent Enerji Üretim Otoprodüksiyon San. ve Tic. A.Ş.
Bilkent Sigorta Aracılık Hiz. A.Ş.
IBS Sigorta
ODTC JV
1,111,608
193,448
106,343
5,915,361
1,441,824
41,222
15,954,303
-
776,367
17,117,694
Restated 31 December 2008
Payables
Current
Non Current
Trading Non Trading
Trading Non Trading
8,899,507
1,233,361
3,565,372
275,897
642,402
9,990,375
2,917,111
375,193
3,247,521
1,531,188
33,222
959,337
1,646,060
-
188
95,618
Tepe Akfen Reform Ltd.
325,790
-
33,654
-
43,740,557 16,681,859
493,242
-
Other
-
TGS
700,881
-
-
-
431,764
Tepe Erkut Adi İş Ortaklığı
Tepe Grubu United Kingdom PLC
450,274
-
5,160
-
-
195,671
2,427,279
203,793
1,647,668
1,776,752
493,248
8,386,163
-
-
484,824
256,743
Purchases
4,247,144
Sky Oryx
-
236,562
1,264,045
-
22,640
İBS Sigorta
19,933
Bilkent Sigorta Aracılık Hizmetleri A.Ş.
8,120,144
BilEnerji Bilkent Enerji Üretim Otoprodüksiyon San. ve
Tic. A.Ş.
1,361,786
24,888,403
518,127
Artı Döviz A.Ş.
1,326,761
8,347
Akfen Turizm Yat. ve İnş. A.Ş.
Ankara Teknoloji Geliştirme Bölgesi Kurucu ve İşletici
A.Ş.
Sales
Transactions with related parties
-
353,555
-
-
-
-
-
-
-
2,285
129,106
-
468,772
-
-
-
882,090
262,155
-
-
349
Interest
given
383,305 2,098,312
142,059
-
-
-
-
-
-
-
174,508
-
-
-
1,098
-
-
-
65,138
-
-
-
502
Interest
received
-
564,251
-
-
1,090
-
Other
expenses
16,882
-
-
-
925
5,105
-
-
-
-
-
-
-
28,240
745,563 1,650,014
5,490
-
-
-
-
6,366
-
-
-
-
-
-
-
77,771
- 1,033,521
227,103
387,821
-
-
41,012
-
Other
income
1 January-31 December 2009
803,029
29
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
803,000
-
-
Dividend
received
Tepe İnşaat
Annual Report 2009
189
19,894
-
Other
Tepe Yorum Adi Ortaklığı
Tepe Stroi
189,465
-
2,463,229
83,449,904 17,359,219
-
91,895
104,161
-
89
135,244
-
-
-
-
146,241
-
-
-
699,851
-
-
1,356,447
-
-
-
33,551
-
Interest
received
383,003
762,215
43,995
3,316,604
-
379,122
Tepe Grubu United Kingdom PLC
-
-
5,784,620
2,727,960
Sky Oryx
Tepe Construction
Tepe Ekintaş Ortak Girişimi
30,016
393,416
716,564
2,458,688
-
1,816,973
-
175,410
1,008,481
365,609
18,661
20,499,151
136,456
IBS Sigorta
Bilsigorta Bilkent Sigorta Aracılık Hiz. A.Ş.
8,353,807
3,351,223
-
-
374,089
193,595
Purchases
9,552,814
85,921
25,704,037
381,049
1,125
11,480,910
Sales
BilEnerji Bilkent Enerji Üretim Otoprodüksiyon San.
ve Tic. A.Ş.
Artı Döviz Ticaret A.Ş.
Akfen Turizm Yat. ve İnş. A.Ş
Ankara Teknoloji Geliştirme Bölgesi Kurucu ve
İşletici A.Ş.
Transactions with related parties
11,637
-
-
-
-
Other
income
-
-
-
-
-
Other
expenses
-
75,190
-
-
8,092
-
-
-
-
-
-
-
-
-
-
732
1,527
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48,944
555,530 3,417,945 2,457,752
2,621
-
-
-
-
-
-
-
-
-
3,305
169,486
-
125,416
-
-
228,346 3,322,294 2,407,281
-
25,940
-
416
-
Interest
given
Restated 1 January-31 December 2008
376,125
56,982
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
319,143
-
Dividend
received
190
191
Tepe İnşaat
Annual Report 2009
10. INVENTORIES
Raw materials
Work in process (*)
Finished goods (**)
Trade goods
Other inventories
Allowance for impairment on inventory (-)
31 December 2009
12,237,282
63,268,399
5,414,717
28,654,894
1,685,254
(758,461)
110,502,085
Restated
31 December 2008
9,712,166
30,427,224
21,606,275
27,041,823
1,320,461
(928,373)
89,179,576
(*) Work in processes is mainly composed of the continuing housing project of Maltepe Narcity
residence project and Tepe Prime project as of 31 December 2009 (2008: Maltepe Narcity Project).
(**) As of 31 December 2009, finished goods are mainly composed of completed houses regarding
Maltepe Narcity residence project (2008: Maltepe Narcity Project).
Movement of allowance for impairment on inventory is as follows:
Provisions released
Closing balance
(928,373)
169,490
422
(758,461)
(2,778,342)
1,408,833
441,136
(928,373)
31 December 2009
4,655,779
4,957,758
18,290
2,598,468
6,987
12,237,282
Restated
31 December 2008
4,170,923
3,406,469
951,747
1,161,613
21,414
9,712,166
Details of raw materials are as follows:
Construction work inventories
Furniture inventories
Building material inventories
Catering inventories
Other
192
Details of trade goods are as follows:
Construction work inventories
Furniture inventories
Duty free inventories
Other
31 December 2009
828,063
23,875,741
2,881,673
1,069,417
28,654,894
Restated
31 December 2008
1,551,624
21,946,094
2,622,186
921,919
27,041,823
11. OTHER RECEIVABLES AND CURRENT ASSETS
Income accruals
VAT deductible and carried forward
Other receivables from related parties (Note: 9)
Prepaid expenses
Prepaid taxes and dues
Other VAT
Other receivables
Order advances given
Deposits and guarantees given
Business advances given
Restricted bank accounts (*)
Prepaid concession expenses
Allowance for other doubtful receivables (-)
Other
31 December 2009
489,881
9,936,315
2,463,871
8,203,761
1,729,318
5,299,501
6,234,936
32,926,939
1,846,053
572,770
145,878,578
44,181,771
(2,878,536)
9,110,319
265,995,477
Restated
31 December 2008
108,397
11,929,325
4,741,499
6,559,215
7,127,477
5,172,919
37,348,066
50,484,563
1,789,541
4,785,582
109,470,585
47,834,222
(1,940,752)
3,852,769
289,263,408
(*) USD 108,202,537 of the restricted bank accounts are mainly resulting from funding requirements
of certain projects. Some of the subsidiaries of the Tav Havalimanları Holding A.Ş., a jointly
controlled entity, namely TAV İstanbul, TAV Esenboğa, TAV İzmir, TAV Tunisia, TAV Tbilisi and ATÜ
(together the “Borrowers”) opened these accounts designated mainly to reserve required amount
of debt services, lease payment to DHMİ based on agreements with their lenders. As a result of
pledges regarding the project bank loans, all cash except for cash on hand are classified in these
accounts. Based on these agreements, the Group can access and use such restricted cash but
all withdrawals from the project accounts are upon the lenders’ consent. Interest rates are in the
range of 0.10%-3.70% (31 December 2008: 1.50%-7.49%) for EUR reserves, in the range of
0.17%-1.50% (31 December 2008: 0.11%-1.77%) for USD reserves, and in the range of
4.25%-10.50% (31 December 2008: 13.75%-20.50%) for TRY reserves.
193
Tepe İnşaat
Annual Report 2009
Movements in the allowance for other doubtful receivables during 2009 and 2008 are as follows:
(1,940,752)
(932,225)
28,450
(34,009)
(2,878,536)
Amounts recovered during the year
Closing balance
(3,191,378)
(110,461)
713,111
647,976
(1,940,752)
12. INVESTMENTS IN ASSOCIATES
Details of the Group’s associates at 31 December 2009 are as follows:
Ownership interest (%)
Place of
Proportion
incorporation 31 December 31 December
of voting
and operation
2009
2008 power held
Investments in
Bilenerji Bilkent Enerji
Üretim Otoprodüksiyon
San. ve Tic. A.Ş.
Turkey
15.1%
18.1%
Principal
activity
Energy
33.3% production
Summarized financial information in respect of the Group’s associates is set out below:
Total assets
Total liabilities
Net assets
Group’s share of associates’ net assets
31 December 2009
10,583,679
7,229,668
3,354,011
506,461
Restated
31 December 2008
13,012,156
10,007,639
3,004,517
544,424
Revenue
Loss for the year
Group’s share of associates’ profit/(loss) for the year
21,394,947
(2,907,160)
(438,986)
Restated 1 January
-31 December 2008
22,626,739
(12,134,802)
(2,198,849)
17,994,750
78,875
18,073,625
32,455,037
Accumulated depreciation and impairment
Opening balance as of 1 January 2009
(restated)
Translation effect
Effect of change in Group structure (**)
Charge for the year
Impairment of aircraft (***)
Disposals
Transfers
Closing balance as of 31 December 2009
Carrying value as of 31 December 2009
145,678
550,447
2,775
13,679
566,901
709,469
3,110
712,579
14,620,563
4,631,841
24,073
8,161
846,672
(1,060,210)
4,450,537
20,250,380
90,245
223,010
21,465
(1,514,000)
19,071,100
Buildings
26,268,118
95,266,459
620,473
161,919
5,847,908
(5,495,351)
(18,475)
96,382,933
122,654,587
701,420
5,201,797
311,766
(6,192,462)
(26,057)
122,651,051
Machinery and
Equipment
17,915,873
14,282,722
138,709
259,159
2,985,311
1,170,093
(837,938)
17,998,056
26,785,883
124,954
9,536,764
675,544
(1,209,216)
35,913,929
Vehicles
14,791,779
40,488,469
291,103
124,872
4,426,443
(2,131,269)
18,475
43,218,093
55,095,336
274,458
4,811,951
288,044
(2,495,289)
35,372
58,009,872
Furniture and
Fixtures
84,866,546
12,055,456
222,531
5,327,352
(217,935)
17,387,404
94,378,249
483,558
5,988,411
(378,799)
1,782,531
102,253,950
363,268
664,633
19,443
613
168,082
(264,952)
587,819
1,025,956
29,501
234,450
6,209
(345,029)
951,087
21,419,766
-
7,764,787
14,566
15,165,643
2,119,580
(1,651,739)
(1,993,071)
21,419,766
Leasehold Other Fixed Construction
Improvements
Assets
in Progress
212,846,628
185,934,777
1,397,982
554,724
19,615,447
1,170,093
(10,007,655)
198,665,368
387,201,512
1,910,032
41,162,026
4,640,971
(14,106,919)
(9,094,401)
(201,225)
411,511,996
Total
(*) The remaining portion of transfer amounting to USD 201,225 comprises the transfer to intangible assets.
(**) USD 1,796,737 of total cost is due to the acquisition of Riva İnşaat Turizm Ticaret İşletme ve Pazarlama A.Ş. shares and USD 1,256,457 of total cost is due to the acquisition of 6% of TAV Tbilisi shares in 2009. (Note 38)
(***) During the period, the Group carried out a review of the recoverable amount of its leased aircraft based on market prices.The review led to the recognition of an impairment loss of USD 1,170,093 that has been recognized in statement of comprehensive income.
58,536,865
188,220
1,218,363
(320,385)
(9,094,401)
50,528,662
Cost value
(restated)
Translation effect
Additions
Effect of change in Group structure (**)
Disposals
Property revaluation loss
Transfers (*)
Land
Land Improvements
13. PROPERTY, PLANT AND EQUIPMENT
194
(165,906)
16,505
(11,764)
550,447
40,542,115
15,618,539
(3,624)
(1,155,293)
997,295
(33,470)
4,631,841
4,826,933
(47,175)
(5,757,414)
366,230
(409,074)
7,705
20,250,380
26,090,108
Buildings
27,388,128
20,037
(25,368,825)
114,519
6,007,319
(6,165,592)
95,266,459
120,659,001
(163,201)
(29,120,924)
10,590,001
(7,893,987)
962,697
122,654,587
148,280,001
Machinery and
Equipment
12,503,161
(41,143)
(3,011,852)
3,786
3,441,084
(714,511)
14,282,722
14,605,358
(303,916)
(3,949,225)
2,460,064
(960,742)
14,507
26,785,883
29,525,195
Vehicles
14,606,867
(34,027)
(11,835,002)
4,983,228
(3,989,403)
40,488,469
51,363,673
(61,496)
(14,907,857)
4,677,257
(4,160,955)
218,900
55,095,336
69,329,487
82,322,793
9,653
(3,156,459)
4,955,890
(95,226)
12,055,456
10,341,598
34,449
(23,752,123)
1,850,993
(244,072)
10,250,206
94,378,249
106,238,796
361,323
(5,208)
(127,030)
149,355
(9,625)
664,633
657,141
(16,226)
(157,731)
303,339
(11,830)
(146,656)
1,025,956
1,055,060
7,764,787
-
-
1,605
(931,911)
16,246,917
(405,177)
(11,551,459)
7,764,787
4,404,812
Furniture and
Leasehold Other Fixed Construction
Fixtures Improvements
Assets
in Progress
(*) The remaining portion of transfer amounting to USD 244,100 comprises transfer to intangible assets.
159,022
711,612
(5,370,460)
17,994,750
(215,249)
(11,763)
709,469
19,252
(15,888,284)
871,143
58,536,865
23,365,210
936,481
73,534,754
(restated)
Effect of change in the consolidation
structure
Translation effect
Impairment
Charge for the year
Disposals
Cost value
(restated)
Effect of change in the consolidation
structure
Translation effect
Additions
Disposals
Transfers from construction in progress (*)
Land
Land Improvements
201,266,735
(54,312)
(50,190,827)
118,305
20,550,676
(11,019,591)
185,934,777
226,530,526
(536,708)
(94,680,718)
37,365,944
(14,097,600)
(244,100)
387,201,512
459,394,694
Total
Tepe İnşaat
Annual Report 2009
195
196
The following useful lives are used in the calculation of depreciation:
Useful life
5-50 years
5-20 years
2-33 years
2-15 years
1-15 years
3-50 years
5-7 years
Buildings
Land improvements
Machinery and equipment
Vehicles
Furniture and fixtures
Leasehold improvements
Other fixed assets
Depreciation expense of USD 13,228,386 (2008: USD 13,609,718) has been charged to ‘cost of
goods sold’, USD 2,357,295 (2008: USD 2,555,055) to ‘selling and marketing costs’ and USD
4,029,766 (2008: USD 4,504,208) to ‘administrative expenses’.
As of 31 December 2009, as a guarantee for the loans obtained, mortgage has been issued on land
and buildings amounting to USD 207,634,522, based on the consideration values of fixed assets per
loan agreements (2008: USD 195,124,446).
14. INVESTMENT PROPERTY
Leasehold
Buildings Improvements
Total
Cost value and valuation
Additions
58,205,633
255,136
1,974,206
60,434,975
224,833,829
985,524
225,819,353
283,039,462
1,240,660
1,974,206
286,254,328
(Loss) from fair value adjustments
4,820,522
97,464
2,873,358
7,791,344
52,643,631
34,845,387
152,739
34,998,126
190,821,227
39,665,909
250,203
2,873,358
42,789,470
243,464,858
197
Tepe İnşaat
Annual Report 2009
Leasehold
Buildings Improvements
Cost value and valuation
Additions
Gain from fair value adjustments
Charge for the year
(Loss) from fair value adjustments
Total
23,074,608
(11,925,497)
413,790
46,642,732
58,205,633
291,934,575
(67,100,746)
224,833,829
315,009,183
(79,026,243)
413,790
46,642,732
283,039,462
4,059,847
(1,213,409)
1,974,084
4,820,522
53,385,111
2,839,712
(6,056,337)
2,078,041
35,983,971
34,845,387
189,988,442
6,899,559
(7,269,746)
4,052,125
35,983,971
39,665,909
243,373,553
The fair values of the Nautilus and Bilkent Center have been arrived at on the basis of a valuation
carried out by Pamir ve Soyuer Gayrimenkul Danışmanlık A.Ş. and Jones Lange Lasalle, independent
valuers not connected with the Group in October 2008 and May 2010 respectively. The fair values are
determined by using discounted cash flow method, based on rent contracts.
Depreciation expense of USD 2,351,449 has been charged in ‘cost of goods sold’ and USD 1,700,676
in ‘administrative expenses’ in 2008.
The property rental income earned by the Group from its investment property as of 31 December 2009
amounted to USD 21,161,629 (2008: USD 21,490,346).
As of 31 December 2009, as a guarantee for the loans obtained, mortgage has been issued on
investment property amounting to USD 45,194,561 (2008: USD 44,591,153), based on the
consideration values of the investment property per loan agreements.
15. OTHER INTANGIBLE ASSETS
Carrying value
Airport operation rights
Total intangible assets
31 December 2009
Restated
31 December 2008
30,125,372
262,582,485
292,707,857
27,939,143
160,252,470
188,191,613
3,185,373
1,677,102
9,174
904,261
22,089
(9)
2,612,617
5,281,419
66,978
223,794
26,285
(1,711)
201,225
5,797,990
23,045,578
2,714,167
22,572
1,997,733
4,734,472
24,091,768
116,837
3,571,445
27,780,050
Customer
Relations (*)
2,917,347
-
1,978,871
26,778
911,698
2,917,347
State Airports
Administration
License
197,848
901,838
6,584
49,504
957,926
1,015,014
5,761
134,999
1,155,774
Other Intangible
Assets
(*) Customer relations reflect the fair value of an existing customer base at the date of acquisition of the subsidiary. The
management has used discounted future cash flows to estimate the fair value
(**) Effect of acquisition of 6% of TAV Tbilisi shares in 2009.
779,226
2,826,361
19,105
253,065
3,098,531
Accumulated amortization
Opening balance as of 1 January 2009 (restated)
Translation effect
Charge for the year
Effect of change in the Group structure (**)
Disposals
3,691,539
16,181
170,037
3,877,757
Cost value
Translation effect
Additions
Effect of change in the Group structure (*)
Additions due to merging of enterprises
Disposals
Transfers
Purchased
Software and
Rights Trademarks Costs
30,125,372
8,119,468
57,435
3,204,563
22,089
(9)
11,403,546
36,058,611
232,535
528,830
26,285
4,483,143
(1,711)
201,225
41,528,918
Total
198
3,604,317
973,519
3,360
(104,407)
806,489
(1,859)
1,677,102
3,044,086
10,506
(173,291)
2,163,925
(7,907)
244,100
5,281,419
21,377,601
1,363,027
4,704
(178,881)
1,525,317
2,714,167
28,986,928
30,771
(4,925,931)
24,091,768
Customer
Relations (*)
1,978,871
-
2,043,480
7,052
(71,661)
1,978,871
State Airports
Administration
License
113,176
1,058,049
(260,395)
121,180
(16,996)
901,838
1,295,609
(297,794)
34,196
(16,997)
1,015,014
Other Intangible
Assets
(*) Customer relations reflect the fair value of an existing customer base at the date of acquisition of the subsidiary. The
management has used discounted future cash flows to estimate the fair value.
865,178
3,353,704
(811,330)
285,173
(1,186)
2,826,361
Effect of change in the consolidation structure
Translation effect
Charge for the year
Disposals
4,534,493
(1,042,247)
204,039
(4,746)
3,691,539
Cost value
Effect of change in the consolidation structure
Translation effect
Additions
Disposals
Transfers
Rights
Purchased
Software and
Trademarks Costs
27,939,143
6,748,299
8,064
(1,355,013)
2,738,159
(20,041)
8,119,468
39,904,596
48,329
(6,510,924)
2,402,160
(29,650)
244,100
36,058,611
Total
Tepe İnşaat
Annual Report 2009
199
5,507,583
150,836
2,453,610
8,112,029
33,893,968
Opening balance as of 1 January 2009-restated
Translation effect
Effect of the change in the Group structure (*)
Charge for the year
(*) Effect of acquisition of 6% of TAV Tbilisi shares in 2009.
41,445,160
560,837
42,005,997
Ankara Esenboğa
International
Airport
Cost value
Translation effect
Effect of the change in the Group structure (*)
Additions
AIRPORT OPERATION RIGHT
18,312,724
12,002,841
8,215,004
222,061
3,565,776
29,910,811
404,754
30,315,565
İzmir Adnan
Menderes
24,843,991
5,807,554
2,632,497
6,193
2,148,757
1,020,107
18,566,084
(70,299)
12,155,760
30,651,545
Tiflis
International
Airport
181,074,979
-
-
85,531,477
1,246,790
94,296,712
181,074,979
Enfidha
International
Airport
4,456,823
-
-
1,154,022
15,616
3,287,185
4,456,823
Gazipaşa
Airport
262,582,485
25,922,424
16,355,084
379,090
2,148,757
7,039,493
176,607,554
2,157,698
12,155,760
97,583,897
288,504,909
Total
200
3,116,610
(193,797)
2,584,770
5,507,583
35,937,577
Translation effect
Charge for the year
41,445,160
-
(1,544,945)
Additions
42,990,105
Translation effect
Ankara Esenboğa
International
Airport
Cost value
AIRPORT OPERATION RIGHT
21,695,807
8,215,004
3,756,667
(289,505)
4,747,842
29,910,811
17,436
(1,114,331)
31,007,706
İzmir Adnan Menderes International
Airport
15,933,587
2,632,497
987,721
(229,595)
1,874,371
18,566,084
-
(967,143)
19,533,227
Tiflis
International
Airport
85,531,477
-
-
-
-
85,531,477
56,348,931
(1,087,833)
30,270,379
Enfidha
International
Airport
1,154,022
-
-
-
-
1,154,022
1,154,022
-
-
Gazipaşa
Airport
160,252,470
16,355,084
7,329,158
(712,897)
9,738,823
176,607,554
57,520,389
(4,714,252)
123,801,417
Total
Tepe İnşaat
Annual Report 2009
201
202
The following useful lives are used in the calculation of amortization:
Useful life
3-10 years
8-37 years
Indefinite
3-5 years
10 years
Rights
Airport operation rights
State airports administration license
Customer relations
Amortization expense of USD 9,080,153 (2008: USD 8,959,707) has been charged in ‘cost of goods
sold’, USD 163,866 (2008: USD 113,735) in ‘selling and marketing costs’ and USD 1,000,037
(2008: USD 993,875) in ‘administrative expenses’.
16. OTHER NON-CURRENT ASSETS
Other non-trade receivables
Other receivables from related parties (Note: 9)
Prepaid expenses
Withholding tax related to construction projects
Deposits and guarantees given
VAT deductible and carried forward
Advances given
Deferred commission cost
31 December 2009
43,612,563
563,937
1,012,071
40,466,568
2,514,677
1,643,447
2,650,769
4,532,441
800,782
97,797,255
Restated
31 December2008
14,903,830
17,857,789
1,060,337
44,710,699
1,345,129
1,496,956
1,891,584
4,666,008
2,306,094
1,231,595
91,470,021
An analysis of the Group’s prepaid concession expenses as at 31 December 2009 and 31 December
2008 is as follows:
31 December 2009
Balance at 31 December 2008-restated
Rent Payments
Current year concession expense
Translation effect
Represented as current prepaid concession expense
Represented as non-current prepaid concession
expense
Rent
78,795,505
39,353,090
(47,342,291)
1,066,262
71,872,566
43,022,070
Prepaid
development
expenditures
13,749,416
(1,159,700)
186,057
12,775,773
1,159,701
Total
92,544,921
39,353,090
(48,501,991)
1,252,319
84,648,339
44,181,771
28,850,496
11,616,072
40,466,568
203
Tepe İnşaat
Annual Report 2009
31 December 2008
Rent Payments
Current year concession expense
Translation effect
Represented as current prepaid concession expense
Represented as non-current prepaid concession
expense
Rent
124,133,474
35,384,850
(51,327,967)
(29,394,852)
78,795,505
46,690,005
Prepaid
development
expenditures
19,518,835
(1,147,352)
(4,622,067)
13,749,416
1,144,217
Total
143,652,309
35,384,850
(52,475,319)
(34,016,919)
92,544,921
47,834,222
32,105,500
12,605,199
44,710,699
17. JOINT VENTURES
The Group has the following significant interest in joint ventures:
a) a 26.3 per cent equity shareholding with equivalent voting power, in TAV Havalimanları Holding A.Ş.,
a joint venture established in Turkey and operating in airport administration sector.
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Income
Expenses
31 December 2009
838,961,006
1,920,226,371
(538,302,769)
(1,628,335,114)
592,549,494
31 December 2008
841,014,756
1,467,659,534
(580,345,451)
(1,290,855,231)
437,473,608
1,278,123,583
(1,204,221,599)
73,901,984
1,196,522,844
(1,194,720,542)
1,802,302
b) a 47.4 per cent equity shareholding with equivalent voting power, in TAV Yatırım Holding A.Ş., a joint
venture established in Turkey and operating in construction sector.
Current assets
Non-current assets
Current liabilities
31 December 2009
483,294,186
94,272,068
(380,764,198)
(130,876,101)
65,925,955
31 December 2008
402,610,467
94,376,963
(365,774,719)
(81,111,806)
50,100,905
204
Income
Expenses
794,546,209
(773,795,923)
20,750,286
689,735,474
(637,264,959)
52,470,515
c) a 50 per cent equity shareholding with equivalent voting power, in Hyper Foreign Trade Holland N.V.,
a joint venture established in Holland.
Current assets
Non-current assets
Current liabilities
Income
Expenses
31 December 2009
105,450
(5,082,375)
(4.976,925)
31 December 2008
131,512
(4,871,448)
(4,739,936)
(366,397)
(366,397)
(472,612)
(472,612)
31 December 2009
Restated
31 December 2008
1,172,671,831
(1,091,900,678)
(4,924,344)
75,846,809
952,254,659
(882,328,613)
(101,720)
69,824,326
18. CONSTRUCTION CONTRACTS
Contracts in progress at balance sheet date
Construction costs incurred plus recognized profits
less recognized losses to date
Less: progress billings
Provisions
Recognized and included in the accompanying consolidated financial statements as amounts due:
From customers under construction contracts (Note: 8)
To customers under construction contracts (Note: 19)
31 December 2009
77,623,364
(1,776,555)
75,846,809
Restated
31 December 2008
72,565,722
(2,741,396)
69,824,326
As of 31 December 2009, advances received from customers for contract work amounted to USD
6,203,892 (2008: USD 5,352,670).
205
Tepe İnşaat
Annual Report 2009
19. TRADE PAYABLES
a) Current trade payables
Trade payables
Notes payables
Due to related parties (Note: 9)
Amounts due to customers under construction contracts (Note: 18)
Other trade payables
31 December 2009
72,245,990
18,797,245
7,800,678
Restated
31 December 2008
64,727,489
15,785,720
5,915,361
1,776,555
38,232
100,658,700
2,741,396
13,087
89,183,053
b) Non-current trade payables
Trade payables
Due to related parties (Note: 9)
Other trade payables
31 December 2009
7,640,717
743,911
8,384,628
Restated
31 December 2008
3,914,716
27,884
3,942,600
The average credit period on purchases of certain goods related with the construction operations,
building material production, security systems and services given, and sport center services given is
between 68 days, 30 days, 45 days, and 30-45 days respectively. No interest is charged on the overdue trade payables arising due to these operations.
The average credit period on purchases of certain goods related with the catering service given and
furniture production and sales is between 3-4 months (2008: 3-4 moths). The average credit period
on purchases of certain goods related with container production is 45 days. For catering and hotel
service, no interest is charged on the trade payables for the first 150 days from the date of the invoice,
thereafter, interest is charged at 20% per annum on the outstanding balance. For furniture production
and sale, no interest is charged on the trade payables for the first 60 days from the date of the invoice,
thereafter, interest is charged at 2% per annum on the outstanding balance. The average credit period
for purchases of airport administration services is 30 days, no interest is charged on the on the
outstanding trade payables for these purchases.
206
20. BORROWINGS
Current borrowings
Current bank loans
Current installments of non-current loans
Factoring payables
Non-current borrowings
Non-current bank loans
Total borrowings
31 December 2009
Restated
31 December 2008
150,105,951
60,964,586
2,973,623
214,044,160
201,779,794
59,557,825
5,540,747
266,878,366
547,396,159
761,440,319
409,481,653
676,360,019
31 December 2009
214,044,160
102,336,701
95,963,472
64,842,033
284,253,953
761,440,319
Restated
31 December 2008
266,878,366
57,256,616
41,320,251
70,261,723
240,643,063
676,360,019
The borrowings are repayable as follows:
Within one year
Between 1-2 years
Between 2-3 years
Between 3-4 years
More than 4 years
The majority of the borrowings are arranged at floating rates, thus exposing the Group to cash flow
interest rate risk. Spread for TL, EUR, USD, and AED denominated loans at 31 December 2009 is
between 2.20%-19.68%, 1.54%-9.40%, 1.20%-9.50% and 4.25%-8.00%, respectively (31 December
2008: 16.20%-26.40%, 1.10%-12.00%, 1.20%-14.40% and 4.25%-7.40%, respectively).
Certain Restrictions and Covenants of the Loans
USD 11,136,500 of loans as of 31 December 2009 (2008: USD 22,273,000) drawn for the purpose of
facilitating repayment of existing borrowings and financing of Kadıköy Shopping Center
Construction are subject to certain guarantees including mortgage obligation of USD 100,000,000
(2008: USD 100,000,000) and TRY 100,000,000(USD 66,414,292 as of 31 December 2009 and USD
66,124,446 USD as of 31 December 2008) on land and building owned by Group companies. A pledge
of 80% amounting to TRY 24,000,000 (2008: TRY 20,151,230) equivalent of USD 15,939,430 and
USD 13,224,889 for December 2009 and 2008 respectively based on nominal shares and beneficial
interest of 49% amounting to TRY 14,700,000 (2008: TRY 12,250,000) equivalent of USD 9,762,901
and USD 8,100,245 for December 2009 and 2008 respectively based on nominal shares on Bilenerji
Bilkent Enerji Üretim Otoprodüksiyon San. ve Tic. A.Ş. shares exist on behalf of bank. Cheques given
for guarantee of repayment amounting to USD 18,750,000 as of 31 December 2009 (2008: USD
37,500,000). In addition, rent income obtained from Kadıköy Shopping Center will be deposited to
blocked accounts, equivalent to the amounts that will be deducted from the principal and interest
payment obligations.
Tepe İnşaat
Annual Report 2009
207
On August 14, 2009, the Group has closed its loan facility from Goldman Sachs International (“GSI”)
which has an outstanding principal loan balance of USD 90,000,000 and interest balance of USD
12,824,744 as of payment date with a lump sum early payment. The loan maturity was in
September 2009. Upon closing of loan, put option of GSI has been cancelled and the collateral shares
of TAV owned by the Company have been released. For closing this loan and releasing put option, the
Company has borrowed USD 130,000,000. USD 70,000,000 of new loan is borrowed in three parts;
USD 50,000,000, USD 10,000,000 and USD 10,000,000 with interest rates of libor+6%, libor+5.5%
and libor+5.5% and with maturities of 5 years, 2 years and 18 months respectively. Loan is subject to
the guarantee of the pledge over the 3.5% of the share capital of TAV Havalimanları A.Ş. in favour of
Türkiye İş Bankası A.Ş.. The remaining balance, USD 60,000,000, has 8.85% interest rate and maturity
of 1 year. A pledge of 3%, 10,910,000 number of nominal shares with a nominal amount of TL 4.08 on
TAV Havalimanları Holding A.Ş. shares exist on behalf of bank for the related loan.
On October 9, 2009, the Group has closed its loans from Taberna Europe P.L.C (“Taberna”) which have
an outstanding principal loan balance of EUR 29,752,000 with an early payment. For closing this loan,
the Company has borrowed EUR 15,000,000 with interest rate of 9.7 %. The amortized loan amount is
equal to EUR 15,488,974 as of 31 December 2009.
EUR 5,806,902 (2008: EUR 6,110,618) and USD 21,167,412 (2008: USD 22,274,318) of loans as
of 31 December 2009 drawn for the refinancing of Bilkent Shopping Center located at Bilkent are
subject to certain restrictive covenants including the requirement to maintain Debt Service Cover Ratio
(“DSCR”); the net rental income for a rolling period of twelve months divided by the interest expense
plus repayments for the next twelve months to be at least 110%, otherwise Company shall partially
prepay the loan in such a way that DSCR will be at least 110%. In addition to financial ratios, there are
certain guarantees established to secure repayment of the loan including first ranking mortgage over
the property (Bilkent Shopping Center) in favor of the Bank for an amount equal to EUR 31,500,000 as
of 31 December 2009 (2008: EUR 31,500,000) and first ranking pledge over the bank accounts that
rent income from Bilkent Shopping Center deposited. Certain restrictions on the transactions entered
into by the Group or its shareholders are as follows: Upon sale of property, the loan must be prepaid
at once. The Group shall maintain full insurance coverage over the Property. The total outstanding loan
amount shall not at any time be more than 65% of the open market value of the Property, whenever
this happens borrower shall partially prepay the loan until required condition is satisfied. The Company
shall not amend, surrender or alter any lease where the rent exceeds 5% of the annual rental income of
the property.
Loan drawn for financing of İstanbul Maltepe residences is subject to certain guarantees including first
ranking mortgage obligation of USD 25,000,000 on land. The Company has blocked and pledged bank
accounts in banks in favor of the Lender, in order to assure the repayment of loans. The Company also
shall maintain full insurance coverage over the constructions. In the case that the Company operates
the business center that will be built under the terms of the İstanbul Maltepe Project, the rent income
of all the properties belonging to the Company will be transferred to the Lender.
208
TAV İstanbul has bank loan in the amount of EUR 445,862,338 (2008: EUR 429,198,354) under the
facility agreement. The terms of the loan require monthly principal and interest payments for the first
year and semi-annual principal and interest payments on 4 July and 4 January of each year according
to the loan agreements. TAV Esenboğa has a bank loan in the amount of EUR 144,048,218 (2008: EUR
145,947,192) under loan agreement. The terms of the loan require semi-annual principal and
interest payments at each 30 June and 31 December according to the loan agreements starting from
31 December 2007 for interest and 30 June 2008 for principal. TAV İzmir has bank loans in the amount
of EUR 75,881,835 (2008: EUR 90,439,436) under loan agreements. The terms of the loan require
semi-annual principal and interest payments at each 23 January and 23 July according to the loan
agreements. For the project loans of TAV İstanbul, TAV İzmir and TAV Esenboğa in case of an event
of default, the banks have the right to take control of the shares. Upon the occurrence of any event of
default, the banks can demand the sale of shares by way of public auction in accordance with the
applicable provisions of the Bankruptcy and Execution Law of the Republic of Turkey or by way of
private auction among the nominees. In addition, the banks have the right to take control of the
receivables of project companies (disclosed as the restricted bank accounts in Note 11) in order to
perform its obligations under the loan documents, in case of an event of default. Immediately upon
the occurrence of default, and all payments relating to assigned receivables shall be made to the
banks which shall be entitled to collect the assigned receivables and exercise all rights with respect
to assigned receivables. In case of an event of default, the banks have the right to control the bank
accounts of project companies in order to perform its obligations under the loan documents. Upon the
occurrence of event of default project companies shall be entitled to set-off and apply the whole or any
part of the cash standing to the credit of the accounts and any interests, proceeds and other income
that may accrue or arise from the accounts. With the consent of the facility agent, TAV İstanbul, TAV
İzmir and TAV Esenboğa have a right to have an additional subordinated debt approved in advance by
the Facility Agent, indebtedness up to USD 0.5 million for the acquisition cost of any assets or leases
of assets, indebtedness up to USD 3 million for the payment of tax and social security liabilities. EUR
174,823,100 (2008: EUR 174,768,637) of the above mentioned loans are included to the
accompanying financial statements of the Group due to proportional consolidation of TAV.
TAV Havalimanları Holding A.Ş. utilised a bank loan amounting to USD 115,000,000 (equivalent to EUR
81,238,089 at 31 December 2008) with an interest rate of Libor+1.85% and maturity of
November 2012 from Türkiye İş Bankası A.Ş. In relation to such loan, HAVAŞ shares with a nominal
amount of TRY 44,994,667 corresponding to 99.98% of the capital have been pledged in favour
of Türkiye İş Bankası A.Ş.. However, the voting right for these shares remains at TAV Holding. USD
30,196,585 (2008: EUR 21,331,416) of the above mentioned loans are included to the accompanying
financial statements of the Group due to proportional consolidation of TAV.
TAV Tunisia has bank loan in the amount of EUR 373,687,430 (2008: EUR 378,514,760) under loan
agreements. TAV Tunisia has granted share pledge, account pledge and pledge of rights from the
Concession Agreement to the lenders. TAV Tunisia has a right to have additional indebtedness; with a
maturity of less than one year for an aggregate amount not exceeding EUR 3,000,000 (up to 1 January
2020) and not exceeding EUR 5,000,000 (thereafter), under finance or capital leases of equipment if
the aggregate capital value of the equipment leased does not exceed EUR 5,000,000, incurred by, or
committed in favour of, TAV Tunisia under an Equity Subordinated Loan Agreement, disclosed in writing
by TAV Tunisia to the Intercreditor Agent and in respect of which it has given its prior written consent.
USD 98,122,471 (2008: EUR 99,390,026) of the above mentioned loans are included to the
accompanying financial statements of the Group due to proportional consolidation of TAV.
209
Tepe İnşaat
Annual Report 2009
21. OBLIGATIONS UNDER FINANCE LEASES
Minimum lease
payments
Restated
31 December 31 December
2009
2008
Present value of minimum
lease payments
Restated
31 December 31 December
2009
2008
Finance Lease Liabilities
Amounts payable under finance
leases
13,959,164
8,254,989
13,331,182
7,742,654
Within one year
In the second to fifth years inclusive
3,354,121
10,605,043
2,747,920
5,507,069
3,008,004
10,323,178
2,429,122
5,313,532
(627,982)
(512,335)
-
-
13,331,182
7,742,654
13,331,182
7,742,654
3,008,004
2,429,122
10,323,178
13,331,182
5,313,532
7,742,654
Less: Future finance charges
Present value of minimum lease
payments
Less: Amounts due to settlement
within twelve months (shown under
current liabilities)
Amounts due for settlement after 12
months
Finance leases mainly relate to machinery and equipment and furniture and fixtures with lease term of
1-4 years. The fair value of finance lease liabilities is approximately equal to their carrying amount.
22. OTHER FINANCIAL LIABILITIES
Interest rate swaps
31 December 2009
33,542,732
33,542,732
Restated
31 December 2008
25,907,752
25,907,752
210
23. ADVANCES RECEIVED
a) Current
Advances received from housing projects (*)
Other order advances received
b) Non-current
Advances received from housing projects (*)
Other order advances received
31 December 2009
Restated
31 December 2008
12,909
91,236,309
91,249,218
9,753,087
52,308,047
62,061,134
44,643,503
3,529,555
48,173,058
29,854,118
29,854,118
(*) As at 31 December 2009 USD 13,036,269 (2008: USD 9,734,357), USD 12,909 (2008: USD
18,730) and USD 31,607,234 of advance amounts received from continuing housing projects of
Maltepe Narcity, Bilkent Bahçe and Tepe Prime Projects respectively.
24. OTHER PAYABLES AND EXPENSE ACCRUALS
a) Current other payables and expense accruals
Due to personnel
Deferred income (*)
Expense accruals
Other payables due to related parties (Note: 9)
Taxes and dues payable
Social security premiums payable
Deposits and guarantees received
Provision for unused vacation
TAV Tunisia concession payable (**)
Other
31 December 2009
Restated
31 December 2008
8,156,485
16,474,691
14,780,599
7,436,557
10,387,337
5,373,665
1,550,018
3,655,325
4,313,642
7,067,320
79,195,639
7,594,396
15,087,409
9,079,255
15,954,303
7,982,283
4,971,639
3,924,590
2,786,692
1,558,995
14,408,413
83,347,975
(*) As of 31 December 2009 and 2008, balance mainly consists of the sports center membership
fees.
(**) According to the concession agreement, for the Monastir Airport, TAV Tunisia is obliged to pay
33.7% and 11.7% of the total revenues for 2008 and 2009 respectively, or minimum EUR 14.8
million per year will be paid to Tunisian government, as the concession rent expense
(31 December 2008: 33.7%).
211
Tepe İnşaat
Annual Report 2009
31 December 2009
Restated
31 December 2008
3,254,478
32,063,095
841,753
45,398,112
5,451,214
87,008,652
17,117,694
1,091,249
45,602,396
2,190,018
66,001,357
b) Other non-current liabilities and expense accruals
Expense accruals
Other payables due to related parties (Note: 9)
Deposits and guarantees received
Deferred income (*)
Other
(*) As of 31 December 2009 and 2008, balance mainly consists of the sports center membership fees.
25. PROVISION FOR EMPLOYMENT TERMINATION BENEFITS
Under Turkish Labor Law, the Group is required to pay employment termination benefits to each
employee who has qualified. Also, employees are required to be paid their retirement pay provisions
who retired by gaining right to receive retirement pay provisions according to current 506 numbered
Social Insurance Law’s 6 March 1981 dated, 2422 numbered, 25 August 1999 dated and 4447
numbered with 60th article that has been changed. Some transition provisions related to the
pre-retirement service term was excluded from the law since the related law was changed as of 23
May 2002.
The amount payable consists of one month’s salary limited to a maximum of USD 1,570.8 (2008: USD
1,437) for each period of service at 31 December 2009.
The liability is not funded, as there is no funding requirement.
The provision has been calculated by estimating the present value of the future probable obligation of
the Group arising from the retirement of employees. IAS 19 requires actuarial valuation methods to be
developed to estimate the enterprise’s obligation under defined benefit plans. Accordingly, the
following actuarial assumptions were used in the calculation of the total liability:
The principal assumption is that the maximum liability for each year of service will increase parallel with
inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the
anticipated effects of future inflation. Consequently, in the accompanying financial statements as at
31 December 2009, the provision has been calculated by estimating the present value of the future
probable obligation of the Group arising from the retirement of the employees. The provisions at the
respective balance sheet dates have been calculated assuming an annual inflation rate of 4.80% and
a discount rate of 11%, resulting in a real discount rate of approximately 5.92% (31 December 2008:
6.26%). The anticipated rate of forfeitures is considered. As the maximum liability is revised semi
annually, the maximum amount of USD 1,611.9 effective from 1 January 2010 has been taken into
consideration in calculation of provision from employment termination benefits (31 December 2008:
USD 1,494.45 effective as of 1 January 2009).
212
Provision at 1 January
Service cost
Interest cost
Termination benefits paid
5,047,709
3,404,090
1,361,871
(3,319,415)
182,746
6,677,001
Restated 1 January31 December 2008
6,111,285
3,856,083
279,839
(3,175,124)
(2,024,374)
5,047,709
The charge of USD 1,634,325 (2008: USD 3,183,823) is included in administrative expenses, and the
charge of USD 3,131,636 (2008: USD 952,099) is included in cost of services rendered.
26. TAXATION ON INCOME
31 December 2009
Restated
31 December 2008
11,737,534
(7,918,084)
3,819,450
7,795,069
(4,710,332)
3,084,737
10,710,891
7,808,719
(7,524,267)
3,186,624
(1,741,205)
6,067,514
Arising on income and expenses taken directly to
equity:
-Effective portion of changes in fair value of cash flow
hedges
(2,940,919)
(1,572,898)
Total deferred tax recognized directly in equity
(2,940,919)
(1,572,898)
Current tax liability
Current corporate tax provision
Less: prepaid taxes and funds
Tax expense/income comprises
Current tax expense
Deferred tax expense relating to the origination and
reversal of temporary differences
Total tax expense
Income tax recognized directly in equity
Deferred tax
Corporate Tax
The Turkish entities within the Group are subject to Turkish corporate taxes. Foreign entities are subject
to taxation in accorance with the tax procedures and tax lagislations effective in the countires in which
they operate. Provision is made in the accompanying financial statements for the estimated charge
based on the Group’s results for the year.
Tepe İnşaat
Annual Report 2009
213
Corporate tax is applied on taxable corporate income, which is calculated from the statutory
accounting profit by adding back non-deductible expenses, and by deducting dividends received from
resident companies, other exempt income and investment incentives utilized.
The effective rate of tax in Turkey in 2009 is 20% (2008: 20%). Taxation for other countries is
calculated at the rates prevailing in the relevant jurisdictions.
In Turkey, advance tax returns are filed on a quarterly basis. The advance corporate income tax rate in
2009 is 20% (2008: 20%).
Losses are allowed to be carried 5 years maximum to be deducted from the taxable profit of the
following years. Tax carry back is not allowed.
In Turkey there is no procedure for a final and definitive agreement on tax assessments. Companies file
their tax returns within four months following the close of the accounting year to which they relate. Tax
authorities may, however, examine such returns and the underlying accounting records and may revise
assessments within five years.
Income Withholding Tax
In addition to corporate taxes, companies should also calculate income withholding taxes and funds
surcharge on any dividends distributed, except for companies receiving dividends who are Turkish
residents and Turkish branches of foreign companies. Income withholding tax applied in between 24
April 2003-22 July 2006 is 10% and commencing from 23 July 2006, this rate has been changed to
15% upon the Council of Mininsters’ Resolution No: 2006/10731. Undistributed dividends incorporated
in share capital are not subject to income withholding tax.
Investment Incentives
The application of investment incentives is revoked commencing from 1 January 2006. However,
companies are allowed to offset their carried forward outstanding allowances as of 31 December 2005
against the 2006, 2007 and 2008’s taxable income in cases where they have insufficient taxable profits. Non-deductible investment incentives from the 2008’s taxable income cannot be carried forward to
following years.
Upon the resolution made by the Constitutional Court on 15 October 2009, the legal arrangement,
which proposes to eliminate the vested rights was revoked on the basis of being contradictory to the
constitution. Deadline of the investment incentive period is, thereby, ceased as of the reporting date.
The related resolution was published in the Official Gazette on 8 January 2010.
214
Taxation of Foreign Branches of TAV Havalimanları Holding A.Ş.
Egypt, Tunisia, Libya, Qatar and Georgia are subject to corporate tax and withholding tax regimes
effective in the relevant country Effective tax rates are as follows:
Countries
Egypt
Tunisia (*)
Libya (**)
Qatar (**)
Muscat
Georgia
Corporate Tax Rate %
20
30
15-40
10-35
12
15
Witholding Tax Rate %
10-15
10-15
-
(*) According to concession agreement, TAV Tunisia is exempt from corporate tax for a period of 5
years starting from the concession agreement date.
(**) Corporate tax rates in Qatar and Libya are determined based on a sliding scale as a function of net
income.
Deferred Tax
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising
between its financial statements as reported for IFRS purposes and its statutory tax financial
statements. These differences usually result in the recognition of revenue and expenses in different
reporting periods for IFRS and tax purposes and they are given below.
For calculation of deferred tax asset and liabilities, the rate of 20% (2008: 20%) is used for companies
domiciled in Turkey.
215
Tepe İnşaat
Annual Report 2009
In Turkey, the companies cannot declare a consolidated tax return, therefore subsidiaries that have
deferred tax assets position were not netted off against subsidiaries that have deferred tax liabilities
position and disclosed separately.
Restatement and depreciation/amortization differences of property, plant and equipment and other
intangible assets
Retirement pay provision
Discount of accounts and notes receivable
Discount of accounts and notes payable
Provision for doubtful receivables
Progress income/(expense)-net
Property revaluation reserve
Previous year project related costs
Tax loss carry-forwards
Derivative financial instruments
Investment incentives
Other
Provision for deferred tax asset (*)
31 December 2009
Restated
31 December 2008
5,760,751
(924,044)
(410,483)
166,560
(2,674,533)
(14,130,841)
34,043,235
(6,344,834)
2,926,858
(13,479,771)
(4,689,698)
(8,600,129)
6,338
4,987,447
(783,135)
(499,558)
161,796
(2,382,117)
(9,496,753)
34,482,026
(3,242,808)
3,238,255
(18,646,846)
(1,523,123)
(128,354)
27,239,795
18,889,204
22,947,247
29,114,077
(*) The carrying amount of deferred tax assets are reviewed at each balance sheet date individually
for Group companies. Since, the major part of the Group companies other than Tav Havalimanları
Holding A.Ş. and Tav Yatırım A.Ş. and their subsidiaries, transfer the funds generated from their
operations to Bilkent University as donations and it is not probable whether sufficient taxable
profits will be available for these companies; provision is set for the deferred tax assets realized at
these companies.
216
Movement of deferred tax liabilities for year ended 31 December 2009 and 2008 are as follows:
Movement of deferred tax liabilities:
Opening balance
Translation effect
Effect of change in group structure
Acquired in business combinations
Charged to income
Recognized in other comprehensive income
Closing balance at the end of the year
29,114,077
(356,121)
(117,855)
714,289
(7,524,267)
(2,940,919)
18,889,204
43,058,299
(10,630,119)
(1,741,205)
(1,572,898)
29,114,077
Total charge for the year can be reconciled to the accounting profit as follows:
Loss before tax
Tax at the domestic income tax rate of 20 %
(2008: 20%)
Tax effects of:
-revenue that is exempt from taxation
-expenses that are not deductible in determining
taxable profit
-effect of carry forward tax losses
-tax losses not recognized as deferred tax
-effect of consolidation adjustments
-remeasurement differences subject to taxation
-effect of provision for deferred tax asset
-effect of investment incentives
-translation of non monetary items (IAS 21)
-other
Tax (income)/expense for the year
(46,507,233)
(23,957,285)
(9,301,447)
(4,791,457)
(247,307)
(7,136,852)
6,831,520
4,682,883
1,684,441
2,463,970
3,573,426
2,655,086
(8,377,573)
(41,525)
(736,850)
3,186,624
9,945,331
638,446
2,150,356
(2,196,522)
1,885,982
6,654,303
(1,857,275)
775,202
6,067,514
217
Tepe İnşaat
Annual Report 2009
27. COMMITMENTS AND CONTINGENCIES
Letters of guarantee
Notes payable given as guarantee
Letter of credits
Mortgages
31 December 2009
505,576,161
17,561,896
2,288,516
228,868,792
754,295,365
Restated
31 December 2008
438,846,305
16,489,275
18,707,065
247,588,706
721,631,351
With regards to Baku-Tblisi-Ceyhan Pipeline Construction’s Turkey portion, on 20 September 2002,
Boru Hatları ile Petrol Taşıma A.Ş. (“Botaş”) entered into contracts with Tepe İnşaat Sanayi A.Ş. for EPC
004 Stations Construction Works (“Stations Contract”) and with Tepe-Nacap Joint Venture, one of the
entities of the Group under common control, for EPC 001 Pipeline and Block Valve Station Construction Works Lot A (“Lot A Contract”).
Botaş has terminated the Lot A Contract on 7 January 2005 and Stations Contract on 29 March 2005.
During the settlement of the accounts period following the termination of both contracts, a Repayment
Protocol (the “Protocol”) has been signed by the parties on 30 October 2006 and the Company
delivered promissory notes amounting to USD 93,405,368 which corresponds to principal amount
including interest plus value added tax determined according to the Protocol. Although the debt
amount have been determined and promissory notes had been delivered, according to the
Protocol, both parties acknowledge that there remain matters of dispute and upon resolution of
disputes between parties through courts or amicable settlement of final accounts, the agreed upon
amount can be deducted from the Protocol repayments of the Company in the event that Botaş found
as indebted and in reverse agreed upon amount can be added to the Protocol repayments in the event
that the Company found as indebted. In 2009, the Company has paid of promissory notes amounting
to USD 10,317,553 (2008: USD 10,383,819) and USD 6,515,196 (2008: USD 6,557,040) related with
Stations Contract and Lot A Contract respectively. These payments are presented under “other gains
and losses” line item within the income statement.
In May 2007, the Company applied to International Arbitration and claimed that it has receivable
amount changing between USD 83,000,000 and USD 105,000,000 from Botaş related with the
Stations Contract. This claim by itself only exceeds the principal amount stated in the Protocol for
both Stations and Lot A contracts. In February 2008, the Company made an additional claim of USD
84,000,000 from Botaş related with the Lot A construction work. Legal counsel of the Company is of
the opinion that upon the resolution in the Arbitration Panel, the Protocol repayments may be stopped
and Botaş may be in a position to pay off the claims of the Company.
Regarding the Stations Contract, based on the information provided by the legal counsel of the
Company, in June 2009, a partial award was rendered by the tribunal indicating that the termination of
the contract by Botaş was unlawful. Botaş has appealed in France by claiming the cancellation of the
said Partial Award. Per legal counsel of the Company, the partial award is not expected to be cancelled
by French Appeal Court. Since a reliable estimate of the possible outcome of this dispute could not
be made as of reporting date and the legal counsel of the Company declares that the Company’s
entitlements could probably be more than the promissory notes delivered, no provision is set forth for
the promissory notes by the Group management in the accompanying condensed consolidated interim
financial information.
218
Within the period, the Company was requested a payment by Finansbank A.Ş. (the “Bank”) for the
debts of Meteksan Informations Technology Group (“Meteksan IT Group”) whose shares were sold
by the Group in 2007. Based on the information provided by the legal counsel of the Company, as
part of the sale of the shares of Meteksan IT Group, all cash and non-cash guarantees given for its
loans by the Company were terminated by the mutual agreement between the creditors of Meteksan
IT Group including the Bank and the Company. Therefore, payment by the Company for the debts of
Meteksan IT Group to the Bank is not demandable. As the litigation is in progress and no cash outflow
is expected by the Company management based on the opinion of the legal counsel of the Company,
no provision is set forth in the accompanying consolidated financial statements. In March 2010, the
Company and the Bank has signed a protocol. According to this protocol, a restricted bank account is
credited at the Bank with a maximum amount limit of USD 25 million. Per the Group management the
protocol has been signed to keep the Narcity project going and the protocol will have no effect on legal
proceedings.
28. SHAREHOLDERS’ EQUITY AND LEGAL RESERVES
As of 31 December 2009 and 2008 the share capital is held as follows:
Shareholders
Tepe Emlak İnşaat Yatırım A.Ş.
Meteksan Matbaacılık ve Tekn. Tic.
San. A.Ş.
Tepe Mobilya San. Ve Tic. A.Ş.
Tepe Home Mobilya ve Dekorasyon
Ürünleri A.Ş.
Tepe Savunma ve Güvenlik Sistemleri
San A.Ş.
Nominal capital
Inflation Adjustment
Adjusted capital
Converted capital-USD
(%)
85.86
13.33
31 December
2009 TRY
480,839,813
74,666,732
(%)
85.86
13.33
31 December
2008 TRY
429,321,260
66,666,725
<0.01
0.04
17,234
249,187
<0.01
0.04
15,388
222,489
0.03
154,552
0.03
137,993
0.73
4,072,482
560,000,000
0.73
3,636,145
500,000,000
325,603,003
341,438,438
885, 603,003
841,438,438
588,166,968
556,396,507
The total number of ordinary shares is 560 million shares (2008: 500 million shares) with a par value of
TRY 1 per share (2008: TRY 1 per share).
The legal reserves consist of first and second legal reserves, appropriated in accordance with the
Turkish Commercial Code. The first legal reserve is appropriated out of historical statutory profits at the
rate of 5% per annum, until the total reserve reaches 20% of the historical paid-in share capital. The
second legal reserve is appropriated after the first legal reserve and dividends, at the rate of 10% per
annum of all cash dividend distributions.
219
Tepe İnşaat
Annual Report 2009
29. DONATIONS
Bilkent Holding A.Ş. has been founded by Bilkent University, which is itself a legal entity established
by Turkish Law. Its purpose is to aid in financing the University. Companies, in which Bilkent Holding is
directly and/or indirectly the major shareholder, are transferring funds generated from their operations
to Bilkent University. Such revenues are transferred in the form of donations and the donations, as
presented in the income statement as expense item, are tax deductible.
30. REVENUE
Construction income
Non-construction income
Sales returns and discounts
422,012,116
502,889,425
(7,863,586)
917,037,955
577,440,491
578,880,273
(8,999,451)
1,147,321,313
108,237,849
5,476,432
3,172,610
67,099,701
12,307,561
8,810,060
34,986,354
13,826,260
28,701,746
18,438,934
1,087,763
558,824
51,873,756
48,001,338
41,359,688
24,924,476
34,026,073
502,889,425
132,967,503
13,451,796
21,652,425
66,159,711
15,068,945
7,973,973
32,252,394
21,060,554
31,163,312
20,241,909
1,325,311
362,968
57,072,945
49,558,203
40,841,089
28,064,908
39,662,327
578,880,273
Details of non-construction income are as follows:
Furniture sales income
Construction business merchandise sales income
Other services income of construction businesses
Security systems and services income
Container sales income of construction businesses
Hotel services income
Catering services income
Building materials sales income
Rent income
Sports center income
Shopping center rent income
Construction machinery and equipment rent income
Duty free shop good sales
Aviation income
Handling income
Concession fee-duty free shop
Other
Total income from non-construction projects
220
31. COST OF SALES
Construction costs
Non-construction costs
(387,708,974)
(356,178,075)
(743,887,049)
(468,922,550)
(384,025,702)
(852,948,252)
11,421,334
11,134,594
160
195,672
90,908
1,379,957
7,593,076
20,394,367
13,779,067
8,336,479
30,158
5,158,906
253,524
1,195,384
445,052
15,419,503
32. INVESTMENT REVENUE
Interest revenue:
Bank deposits
Repurchase agreements
Other loans and receivables
Held for trading investments
Dividends received
Other
Investment revenue earned on financial assets, analyzed by category of asset, is as follows:
Loans and receivables (including cash and bank balances)
11,330,426
Held for trading investments
90,908
11,421,334
Investment income earned on non-financial assets
8,973,033
20,394,367
13,525,543
253,524
13,779,067
1,640,436
15,419,503
221
Tepe İnşaat
Annual Report 2009
33. OTHER GAINS AND LOSSES
Gain on disposal of property, plant and equipment-net
Provision expense-net
Provision for diminution in value of AFS investments
Gain on disposal of available for sale investments-net
Gain/(loss) on sale of investment in associates-net (**)
Fx gain/(loss) on balance sheet items other than financial
borrowings
Costs for completed projects in previous years-net (*)
Other (loss)/gain due to litigation settlement-net
Change in fair value of investment property
Other gains due to insurance compensation-net
Commission income/expense-net
Other donations
Rent income
Contribution to GE Income (***)
Advertisement income
Other-net
2,533,463
(1,494,994)
(16,011)
1,758,822
3,685,636
3,056,687
(1,758,632)
(2,440,144)
100,425
716,255
3,011,057
(26,068,240)
(86,633)
(2,873,358)
364,721
175,648
(3,314,563)
3,224,521
3,040,098
3,913,224
199,646
(11,946,963)
29,844,882
(23,690,663)
(2,257,461)
10,658,761
423,945
(44,753)
(14,128,954)
3,592,202
633,690
3,410,276
2,289,012
10,405,528
(*) As of 31 December 2009, USD 16,832,749 (2008: USD 16,940,859) of the costs for completed projects in previous years consist of the payment of the promissory notes to Botaş (as mentioned in detail in Note 27) and the related court expenses.
(**) As of June 2009, agreement related with 15% of Tav Tunusie minority shares sale with an amount of EUR 27,999,825 was signed between Tav Holding and International Finance Corporation (IFC), World Bank affiliate. Share control was passed to IFC in August 2009. As of 31.12.2009, share percentage of Tav has decreased from 100% to 85% (2009: 100%).
(***) Contribution to GE Income comprises of electricity, water supply, heating and natural gas income generated from lessee of the Group.
222
34. MARKETING AND SALES EXPENSES
Employee benefit expenses
Depreciation expense
Amortization expense
Advertising expense
Export expense
Commission expense
Transportation expense
Utility expenses
Taxes, dues and fees expenses
Rent expenses
Communication expenses
Repair and maintenance expenses
Consulting expenses
Insurance espenses
Other expenses
(17,669,904)
(2,357,295)
(163,866)
(1,228,405)
(328,007)
(980,523)
(649,990)
(3,296,565)
(158,274)
(9,364,103)
(789,733)
(683,685)
(477,427)
(270,839)
(2,110,997)
(40,529,613)
(20,768,656)
(2,555,055)
(113,735)
(1,716,089)
(316,399)
(1,198,870)
(1,074,525)
(4,191,374)
(121,796)
(9,204,337)
(977,326)
(712,636)
(511,035)
(388,520)
(1,777,149)
(45,627,502)
223
Tepe İnşaat
Annual Report 2009
35. ADMINISTRATIVE EXPENSES
Employee benefit expenses
Depreciation expense
Amortization expense
Taxes, dues and fees expenses
Non allowable charges
Rent expenses
Communication expenses
Repair and maintenance expenses
Insurance expenses
Consulting and lawsuit expenses
Utility expenses
Transportation expenses
Presentation and accommodation expenses
Personnel travel expenses
Cleaning expense
Other expenses
(20,629,882)
(4,029,766)
(1,000,037)
(3,493,051)
(4,782,075)
(1,606,114)
(1,209,762)
(3,114,337)
(2,984,388)
(8,516,344)
(4,819,130)
(302,906)
(603,494)
(1,365,985)
(2,340,713)
(4,517,010)
(65,314,994)
(22,687,580)
(6,204,884)
(993,875)
(2,660,114)
(5,087,157)
(1,944,715)
(667,624)
(3,938,557)
(2,377,432)
(10,103,408)
(5,130,992)
(260,329)
(855,697)
(1,515,922)
(2,617,151)
(7,208,805)
(74,254,242)
36. FINANCE COSTS
Interest on bank loans
Interest on obligations under finance leases
Commission expenses
Fair value losses on derivatives
Net foreign exchange (loss)/gain on borrowings
Other finance costs
(70,726,766)
(410,646)
(6,228,241)
(3,046,319)
(2,101,799)
82,513,771
(49,582,546)
(664,202)
(9,111,321)
(675,268)
(58,890,110)
(368,908)
119,292,355
224
37. FOREIGN CURRENCY POSITION
31 December 2009
USD
Equivalent of
USD
USD
Equivalent of
EUR
USD
Equivalent of
Other
Total
USD
CURRENT ASSETS
62,820,580
34,507,452
15,002,495
112,330,527
Trade receivables
Advances given
49,786,191
9,070,201
238,366
3,725,822
24,962,242
7,267,107
26,610
2,251,493
9,880,447
5,122,048
-
84,628,880
21,459,356
264,976
5,977,315
NON-CURRENT ASSETS
59,000,877
7,634,020
4,205,320
70,840,217
Trade receivables
16,670,994
42,329,883
6,640,599
993,421
4,204,261
1,059
27,515,854
43,324,363
TOTAL ASSETS
121,821,457
42,141,472
19,207,815
183,170,744
CURRENT LIABILITIES
131,604,999
32,013,511
4,999,276
168,617,786
Borrowings
Trade payables
Advances received
Other liabilities and expense accruals
126,192,596
2,608,006
472,760
670,183
1,661,454
25,634,919
5,911,942
30,021
436,629
4,295,081
704,195
151,827,515
12,815,029
502,781
670,183
2,802,278
84,184,944
41,737,283
-
125,922,227
Borrowings
Other non-current liabilities and expense
accruals
Advance received
79,929,037
483,155
32,909,874
-
-
112,838,911
483,155
3,357,044
415,708
4,050,867
4,776,542
-
7,407,911
5,192,250
TOTAL LIABILITIES
215,789,943
73,750,794
4,999,276
294,520,013
Net foreign currency position
(93,968,486)
(31,609,322)
14,208,539 (111,349,269)
225
Tepe İnşaat
Annual Report 2009
Restated-31 December 2008
USD
Equivalent of
USD
USD
Equivalent of
EUR
USD
Equivalent of
Other
Total
USD
CURRENT ASSETS
132,042,916
32,922,649
14,512,800
179,478,365
72,829,246
6,306,862
578,085
52,328,723
16,853,760
13,716,208
666,987
1,685,694
2,484,672
1,485,716
98,945
10,443,467
92,167,678
21,508,786
1,344,017
64,457,884
NON-CURRENT ASSETS
7,729,436
13,581,780
-
21,311,216
Trade receivables
7,729,436
-
13,581,780
-
7,729,436
13,581,780
TOTAL ASSETS
139,772,352
46,504,429
14,512,800
200,789,581
CURRENT LIABILITIES
198,433,074
34,316,601
9,407,117
242,156,792
Borrowings
Trade payables
Advances received
Other liabilities and expense accruals
174,806,449
5,528,463
1,060,712
816,316
16,221,134
20,074,224
6,022,420
685,896
5,395,366
2,138,695
6,050,619
22,036
3,334,462
194,880,673
17,601,502
1,746,608
6,233,718
21,694,291
38,745,820
50,823,759
-
89,569,579
Borrowings
Other non-current liabilities and expense
accruals
Advance received
32,295,725
985,010
50,373,716
29,622
-
82,669,441
1,014,632
5,020,827
444,258
420,421
-
-
5,441,248
444,258
TOTAL LIABILITIES
237,178,894
85,140,360
9,407,117
331,726,371
Net foreign currency position
(97,406,542)
(38,635,931)
Trade receivables
Advances given
5,105,683 (130,936,790)
226
38. ACQUISITION OF SUBSIDIARY
An analysis of goodwill as at 31 December 2009 and 2008 is as follows:
Balance at 1 January
Translation effect
Addition during the year (*)
Balance at 31 December
64,093,636
728,343
7,473,774
72,295,753
70,223,828
(6,130,192)
64,093,636
(*) USD 6,020,210 of additions related with the purchase of shares of TGS Yer Hizmetleri A.Ş (“TGS”)
and USD 1,453,564 of additions are related with the purchase of shares of TAV Tbilisi.
Goodwill amount as at 31 December 2008 is related with the purchase of 40% of shares of
Havaalanları Yer Hizmetleri A.Ş. (“HAVAŞ”) by TAV Havalimanları Holding A.Ş. on 9 November 2007
and increase its stake from 60% to 100% and purchase of 45% of the issued share capital of Sports
International Bilkent Fitness ve Spor Merkezi A.Ş. (“Sports International”) on 31 August 2007.
In 2009, Türk Hava Yolları A.O. (“THY”) and HAVAŞ signed a joint venture agreement which sets the
terms and the conditions for the sale of 50% share capital of TGS to HAVAŞ as well as the basic
principles of the engagement between THY and TGS. The joint venture was approved by the
Competition Board on 27 August 2009. TGS had no operation before the acquisition date.
Pre-acquisition carrying amounts were determined based on the applicable IFRSs immediately before
the acquisition. The values of assets, liabilities and contingent liabilities recognised on acquisition are
their estimated fair values.
The fair value of the customer relationship acquired is based on the excess earnings method whereas
the fair value of licenses is based on the replacement cost approach.
TGS signed a Service Agreement with THY to provide ground handling services to THY in five main
airports of Turkey, i.e. İstanbul Atatürk, Ankara, İzmir, Antalya and Adana Airports.
227
Tepe İnşaat
Annual Report 2009
The net assets acquired in the transaction, and the goodwill arising, are as follows:
Recognized values on Acquisition
Net assets acquired
Receivables from related parties
Deferred tax liability
5,231,273
4,483,140
5,601,290
(714,288)
14,601,415
Goodwill
Total consideration
Net cash outflow arising on acquisition
Total consideration
Unpaid portion
Cash consideration paid
Cash and cash equivalents acquired
6,020,210
20,621,625
20,621,625
(10,570,752)
10,050,873
(5,231,273)
4,819,600
In 2009, TAV Holding acquired 6% shareholding of TAV Tbilisi, increasing its total share from 60% to
66% and its voting power from 50% to 66%. The sales price of the relevant shares has been calculated
through the investment amount.
228
The net assets acquired in the transaction, and the goodwill arising, are as follows:
Recognized values on acquisition
Net assets acquired
Restricted bank balances
Trade receivables
Receivables from related parties
Inventories
Other receivables and assets
Airport operation right
Deferred tax asset
Trade payables
Borrowings
Payables to related parties
Other payables and expense accruals
Provisions
871
84,723
65,246
4,813
10,240
10,925
104,985
527
1,499,627
186,036
27,817
(11,685)
(754,437)
(497,324)
(156,653)
(4,668)
571,043
Goodwill
Total consideration
1,453,564
2,024,607
Cash consideration paid
Translation effect
Cash and cash equivalents acquired
1,948,717
75,890
(871)
2,023,736
Tepe İnşaat
Annual Report 2009
229
39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going
concern while maximizing flow of resources to Bilkent University through the optimization of the debt
and equity balance.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in Note
20, cash and cash equivalents and equity attributable to equity holders of the parent, comprising
issued capital, reserves and retained earnings.
The Group’s risk management committee reviews the capital structure on a semi-annual basis. As a
part of this review, the committee considers the cost of capital and the risks associated with each
class of capital. Based on recommendations of the committee, the Group will balance its overall capital
structure through new share issues and share buy-backs as well as the issue of new debt or the
redemption of existing debt.
The Group’s overall strategy remains unchanged from 2008.
-
-
12,678,259
-
-
-
-
-
59,477,456
-
5,596,323
-
-
-
96,634,026
Fair value
through
profit or loss
-
-
279,003,450
72,910,432
-
-
-
267,087,048
49,996,772
-
Loans and
receivables
-
-
25,346,692
-
-
-
26,350,499
-
93,125,653
33,071,997
676,360,019
-
-
109,043,328
39,499,652
761,440,319
-
-
Financial
Available
liabilities at
for sale amortized cost
25,907,752
-
-
-
33,542,732
-
-
-
Derivatives
93,125,653
58,979,749
676,360,019
279,003,450
110,935,383
59,477,456
109,043,328
73,042,384
761,440,319
267,087,048
81,943,594
96,634,026
Carrying
value
93,125,653
58,979,749
676,360,019
279,003,450
110,935,383
59,477,456
109,043,328
73,042,384
761,440,319
267,087,048
81,943,594
96,634,026
Fair
value (*)
19
22-24
20
8
7-11-16
6
19
22-24
20
8
7-11-16
6
Note
(*) Group management took into consideration the carrying value as the indicator of the fair value of trade receivables, other financial assets, trade payables and other financial liabilities.
Borrowings
Trade payables
(including related parties)
31 December 2008
Financial assets
Trade receivables
Borrowings
Trade payables
31 December 2009
Financial assets
Trade receivables
Financial
assets at
amortized
cost
Categories of financial instruments and fair values
230
231
Tepe İnşaat
Annual Report 2009
Fair value measurements recognised in the statement of financial position
The following table provides an analysis of financial instruments that are measured subsequent to
initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is
observable.
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets
for identical assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for
the asset or liability that are not based on observable market data (unobservable inputs).
Financial assets at FVTPL
Derivative Financial assets
Available for sale financial assets
Unquoted equities
Total
Level 1
3,188,694
3,188,694
3,188,694
31 December 2009
Level 2
Level 3
2,407,629
2,407,629
26,350,499
26,350,499
2,407,629
26,350,499
Total
5,596,323
5,596,323
26,350,499
26,350,499
31,946,822
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for
recognition, the basis of measurement and the basis on which income and expenses are recognized, in
respect of each class of financial asset, financial liability and equity instrument are disclosed in note 3
to the financial statements.
Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair
value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The
Group’s overall risk management programme focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the Group’s financial performance.
Risk management is carried out by a central treasury department (Group treasury) under policies
approved by the board of directors. Group treasury identifies, evaluates and hedges financial risks in
close co-operation with the Group’s operating units. The board provides written principles for overall
risk management, as well as written policies covering specific areas, such as foreign exchange risk,
interest rate risk, credit risk, and investment of excess liquidity.
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange
rates (see below) and interest rates (see below).
232
There has been no change to the Group’s exposure to market risks or the manner in which it manages
and measures the risk.
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies. Hence, exposures to
exchange rate fluctuations arise.
The carrying amount of the Group’s foreign currency denominated monetary assets and monetary
liabilities at the reporting date is disclosed in Note 36.
Foreign currency sensitivity
The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with
respect to the US dollar and the Euro.
The following table details the Group’s sensitivity to a 10% increase and decrease in the TRY against
the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk
internally to key management personnel and represents management’s assessment of the possible
change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency
denominated monetary items and adjusts their translation at the period end for a 10% change in
foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign
operations within the Group where the denomination of the loan is in a currency other than the
currency of the lender or the borrower. A positive number indicates an increase in profit or loss where
the TRY strengthens against the relevant currency.
Profit and loss
USD Impact
2009
2008
9,396,849
9,740,654
EUR Impact
2009
2008
3,160,932
3,863,593
Other Impact
2009
2008
1,752,819
1,585,626
The Group’s sensitivity to foreign currency has decreased during the current period mainly due to
the increase in USD trade receivables due to construction projects held in foreign countries and the
reduction in USD and EUR advances and USD borrowings which has decreased short foreign currency
position in more balanced foreign currency position.
Interest rate risk management
The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and
floating interest rates.
The Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the
liquidity risk management section of this note.
Interest rate sensitivity
The sensitivity analyses below have been determined based on the exposure to interest rates for
non-derivative instruments at the balance sheet date. For floating rate liabilities, the analysis is
prepared assuming the amount of liability outstanding at the balance sheet date was outstanding for
Tepe İnşaat
Annual Report 2009
233
the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally
to key management personnel and represents management’s assessment of the reasonably possible
change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the
Group’s:
•
profit for the year ended 31 December 2009 would decrease/increase by USD 652,299 (2008:
decrease/increase by USD 464,163). This is mainly attributable to the Group’s exposure to interest
rates on its variable rate borrowings
The Group’s sensitivity to interest rates has increased during the current period mainly due to the
increase in variable rate debt instruments.
The unlisted available-for-sale equity investments do not have a quoted market value and their fair
values cannot be reliably measured as the range of reasonable fair value estimates is significant and
the probabilities of the various estimates cannot be reasonably assessed. For this reason they are
stated at cost less provision for diminution in value.
As of 31 December 2009, provision for diminution in value for unlisted investments is mainly consist of
USD 2,029,483 provided for Ati Servicess SA (2008: USD 2,006,365), USD 580,491 provided for Batı
Karadeniz Elektrik Dağıtım A.Ş. (2008: USD 577,957) and USD 378,076 provided for Antepe Sağlık ve
Turizm Hizmet Tic. Danış. A.Ş. (2008: USD 361,695). The provision provided for Ati Servicess SA is set
forth for the carrying value of the investment after netting of against the current account.
As at 31 December 2009 USD 32,173,447(2008: USD 25,907,752) interest rate derivatives are used
by TAV Esenboğa, TAV Tunisia, TAV İstanbul and TAV İzmir to manage their exposure to interest rate
fluctuations on bank borrowings. Project finance loans are hedged through Interest Rate Swap (“IRS”)
contract during the life of the loan with an amortising schedule depending on repayment of the loan.
Other price risks
The Group is exposed to equity price risks arising from equity investments. Equity investments are held
for strategic rather than trading purposes. The Group does not actively trade these investments.
Credit risk management
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of
financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are
continuously monitored and the aggregate value of transactions concluded is spreaded amongst
approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and
approved by the risk management committee annually.
Trade receivables consist of a large number of customers, spread across diverse industries and
geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts
receivable.
234
The Group does not have any significant credit risk exposure to any single counterparty or any group
of counterparties having similar characteristics. The credit risk on liquid funds and financial instruments
is limited because the counterparties are banks with high credit-ratings assigned by international
credit-rating agencies.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has built
an appropriate liquidity risk management framework for the management of the Group’s short, medium
and long-term funding and liquidity management requirements. The Group manages liquidity risk
by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities.
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial
liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities
based on the earliest date on which the Group can be required to pay. The table includes both interest
and principal cash flows. The adjustment column represents the possible future cash flows attributable
to the instrument included in the maturity analysis which are not included in the carrying amount of the
financial liability on the balance sheet.
Less than
1 month
1-3
months
3 months
to 1 year
1-5
years
5+
years
Total
31 December 2009
Short-term liabilities
Borrowings
Leasing payables
Trade payables
Other payables to related parties
68,100,072
30,546,208
184,715
35,066,669
2,302,480
61,441,808
26,672,175
766,416
33,263,378
739,839
209,815,239
170,554,311
2,616,776
32,249,914
4,394,238
78,739
78,739
-
-
339,435,858
227,772,694
3,567,907
100,658,700
7,436,557
Long-term liabilities
Borrowings
Leasing payables
Trade payables
962
962
-
16,000
16,000
-
400,086,341
379,035,865
7,770,485
4,934,286
8,345,705
402,982,569
371,082,297
4,749,502
3,434,342
23,716,428
803,085,872
750,118,162
12,519,987
8,384,628
32,063,095
68,101,034
61,441,808
209,831,239
400,165,080
402,982,569 1,142,521,730
235
Tepe İnşaat
Annual Report 2009
Less than
1 month
1-3
months
3 months
to 1 year
1-5
years
5+
years
Total
31 December 2008
Short-term liabilities
Borrowings
Leasing payables
Trade payables
67,349,087
28,830,299
200,588
36,913,175
1,405,025
83,390,786
38,598,262
604,945
35,660,686
8,526,893
239,824,991
214,990,067
2,203,347
16,609,192
6,022,385
-
-
390,564,864
282,418,628
3,008,880
89,183,053
15,954,303
Long-term liabilities
Borrowings
Leasing payables
Trade payables
-
-
- 283,901,097
- 256,674,878
6,291,546
3,935,292
16,999,381
316,471,683
316,346,062
7,308
118,313
600,372,780
573,020,940
6,291,546
3,942,600
17,117,694
67,349,087
83,390,786
239,824,991 283,901,097
316,471,683
990,937,644
40. ADDITIONAL EVENTS AFTER THE BALANCE SHEET DATE
None.
41. RESTATEMENT OF PRIOR PERIODS’ FINANCIAL STATEMENTS
a) Effect of change in consolidation structure
The Group applied proportionate consolidation method to account for its 26.2% ownership interest in
TAV and 47.4% ownership interest in TAV Holding which were previously accounted by using the equity
method. The Group reflected the effect of change in consolidation structure retrospectively.
Also, the Group has changed the classification of certain balance sheet items in order to achieve a
more appropriate presentation in the current period. The comparatives are restated, unless
impracticable, as presented below:
236
The effect of these restatements on the Group’s Balance Sheet and Statement of Changes in Equity is
as follows:
Trade receivables
Inventories
Investments in associates
Goodwill
Trade payables
Borrowings
Advances received
Provisions
Other current payables and expense accruals
Current tax liabilities
Provision for employment termination benefits
Deferred tax liabilities
Other non-current liabilities and expense accruals
Purchase of shares of entities under common control
Legal reserves
Property revaluation reserves
Translation reserves
Retained earnings
Minority interest
Previously Reported
31 December 2008
26,622,540
26,027,437
87,050,885
85,034,630
78,841,669
133,583,080
15,190,469
153,749,422
15,791,893
17,182,881
37,352,570
214,370,424
3,947,535
24,856,830
1,315,275
55,179,216
3,039,296
38,939,296
46,237,146
31,186,804
5,600,313
20,954,135
28,476,842
128,039,640
19,315,545
Restated
31 December 2008
59,477,456
38,024,951
279,003,450
89,179,576
304,167,241
544,424
64,093,636
201,266,735
188,191,613
76,566,188
93,125,653
676,360,019
7,742,654
25,907,752
91,915,252
1,315,275
83,347,975
3,084,737
5,047,709
29,114,077
66,001,357
29,631,494
3,957,477
21,720,218
31,847,096
130,877,485
24,930,690
The effect of these restatements on the Group’s Income Statement is as follows:
Revenue
Cost of sales
Investment revenue
Other gains and losses
Share of the Group’s gain/(loss) of associates
Marketing and sales expenses
Administrative expenses
Finance costs
Donations
Income tax benefit
Previously
Reported 1 January31 December 2008
657,689,372
(449,878,425)
10,686,181
(1,833,266)
19,060,318
(45,630,629)
(35,456,166)
(78,148,193)
(102,782,429)
(1,689,700)
Restated
1,147,321,313
(852,948,252)
15,419,503
10,405,528
(2,198,849)
(45,627,502)
(74,254,242)
(119,292,355)
(102,782,429)
(6,067,514)
Head Office
Beytepe Köyü Yolu No: 5
Bilkent, Ankara TURKEY
Fax: +90 (312) 266 78 38-39
e-mail: [email protected]
Istanbul Office
Başıbüyük Mahallesi, Kuyular Düzü Mevkii,
Emek Cad. No: 281
Maltepe, Istanbul TURKEY
Phone: +90 (216) 675 06 66-67
Fax: +90 (216) 675 06 68
Afghanistan
Afghanistan Regional Office
Tepe Construction Ind. Inc.
Mesjidi Road Wazir Akbarkhan
No: 553 Kabul, AFGHANISTAN
Iraq
Arbil Regional Office
İhsan Doğramacı Erbil Foundation
Bilkent International School Construction
Site Torex Village, Mosul Road, Erbil, IRAQ
Sulaimaniya Regional Office
Federal Development CompanyTepe Construction Ind. Inc. Joint Venture
Sulaimania New University Campus
Construction Qilyasan, Suliamania, IRAQ
www.tepeinsaat.com.tr
This annual report is printed on 100% recycled paper.
Phone: +90 (312) 266 58 00 (13 Lines)

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