Issue 16 - / 2018 RHI Newsletter WE BUILD TRUST 1. AWARD NEWS • RHI has been named as EPC Contractor for the BOTAŞ Kuzey Marmara Underground Gas Storage Facility (Phase III) Project, Silivri/ Turkey • RHI will build a beneficiation plant for Page 5 Page 4 Page 4 KAZZINC, a daughter company of GTG: the visit of RHI Board Members Visit Heavy Lifting on the Glencore International in Kazakhstan Dr. Erman ILICAK to site the ZapSib-2 ECU Project ZapSib-2 ECU Project • RHI is participating in the construction of GazpromNeft Refinery 2. INVESTMENTS • A $1 billion petrochemical investment will be made in the Yumurtalik Free Zone (TAYSEB) in Adana, Turkey by RHI and its partners 3. ANNUALLY PROJECT MANAGERS Page 5 MEETING • The Annual Project Managers Industry Botaş LNG: Blood Donation Global Meeting held 4. NEWS FROM SITES • Gas-To-Gasoline (GTG) Plant: the visit of Dr. Erman ILICAK to site, Akhal Velayat/ 1-New Surface Plant Turkmenistan 2-Common Plant Location 3-Horizontal Drilled Wells • ZapSib-2 ECU Project, Tobolsk/: 4-New Offshore Wells - RHI Board Members visit the site Page 6 - Heavy Lifting Page 2 • BOTAŞ LNG: RHI personnel volunteered RHI has been named as EPC Contractor for the BOTAŞ Kuzey 5th International Nuclear to donate blood, Marmara Ereğlisi/Turkey Marmara Underground Gas Storage Facility (Phase III) Project, Power Plants Summit, • Letter of appreciation from Linde Silivri/Turkey Istanbul/Turkey Engineering 5. EVENTS • Budapest/Hungary - Partner-Client Dinner of MVM OVIT Zrt. and MVM ERBE Zrt. - 4th Central & Eastern Europe Nuclear Industry Congress • Istanbul/Turkey Page 2 - 5th International NPP Summit RHI to build ZhGOK in • Tokyo/Japan Kazakhstan - Turkish–Japan Contractors Association Conference 6. SOCIAL LIFE • Celebration Of 8th March 7. RÖNESANS HOLDİNG NEWS • rises with high-tech tower cranes, St. Petersburg/Russia Page 3 Page 8 • Rönesans’ signature Moscow A $1 billion petrochemical investment will be made in the clinches a “Best International” award, Yumurtalik Free Zone (TAYSEB) in Adana, Turkey by RHI Lakhta Center rises with Moscow/Russia and its partners high-tech tower cranes RHI NEWSLETTER Issue 16 - Q1 / 2018

Award News RHI HAS BEEN AWARDED THE BOTAŞ KUZEY MARMARA UNDERGROUND GAS STORAGE FACILITY (PHASE III) PROJECT CONTRACT The BOTAŞ Kuzey Marmara Underground Gas Storage Facility (Phase III) Project has been awarded to RHI. The EPC project, the contract for which was signed in January 2018, is planned to be completed within 1,100 days and to be delivered in 2021. The project has both onshore and offshore sections, and is our second project with BOTAŞ, Turkey’s state-owned crude oil and natural gas pipeline and trading company.

1-New Surface Plant 2-Common Plant Location 3-Horizontal Drilled Wells 4-New Offshore Wells RHI WILL BUILD A BENEFICIATION PLANT FOR KAZZINC, A DAUGHTER COMPANY OF GLENCORE INTERNATIONAL IN KAZAKHSTAN RHI has reached agreement for the supply of project management consultancy services and installation of a process building for the Zhairem GOK project with KAZZINC, which is a daughter company of Glencore International, and one of the largest mining companies operating in Kazakhstan. The work on the project started on 15 March 2018. RHI is developing industrial sectors in Kazakhstan such as oil and gas, mining, and energy.

KAZAKHSTAN OFFICE ADDRESS KAZAKHSTAN HEAVY INDUSTRIES CONSTRUCTION Park View Office Tower, Kunayev Street 77 (9th Floor), Almaty, Kazakhstan.

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Award News RHI IS PARTICIPATING IN THE CONSTRUCTION OF GAZPROMNEFT MOSCOW REFINERY

RHI began execution of works on 02.02.2018 at The Moscow Refinery Plant (Gazpromneft-MNPZ). The Moscow Refinery Plant is a leader in the production of high-octane petrol and diesel, serving more than 40% of petroleum demand in the Mos- cow Region. The refinery’s annual installed capacity is 12 million tonnes of oil per year.

More than 70% of works have been performed at the construction site of the modern Combined Oil Refining Unit Euro+.

Upgrade of the Moscow Refinery Plant is being carried out by Gazprom Neft since 2011. Euro + is one of the key projects which are part of the second phase of the complex.

Through Euro+, The Moscow Refinery Plant will improve energy efficiency indicators, increase the volume and oil processing yields, increase the yields of light petroleum products, while significantly reducing the environmental impact.

RHI will perform paving works, structural steel erection and installation of technological pipelines.

Investments A $1 BILLION PETROCHEMICAL INVESTMENT WILL BE MADE IN THE YUMURTALIK FREE ZONE (TAYSEB) IN ADANA BY RHI AND ITS PARTNERS

RHI signed a Memorandum of Understanding with Sonatrach and Bayegan and began project development work in August, 2017. The purpose of the project is to establish a Propane Dehydrogenation-Polypropylene (PDH-PP) plant with a capacity of 450 ktons / year. The site location was chosen for its proximity to consumers and and to sea transportation. RHI General Manager, Nuri Celal Toroğu, said that this large and significant investment will reduce by about 25 percent Turkey’s dependence on imports. The new plant’s production of polypropylene, which is an intermediate material used in carpets, packaging, furniture and utensils, will reduce by approximately From left to right: N. Celal Toroğlu-General Manager, Alptekin Tizer-President, $500 million the $2.2 billion that Turkey spends each year on Dr. Erman Ilıcak, Anbdelmoumen Ould Kadour-Sonatrach CEO imported polypropylene, said Toroğlu.

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Annually Project Managers Meeting THE ANNUAL PROJECT MANAGERS INDUSTRY GLOBAL MEETING HELD RHI Senior Managers, Project Managers and Regional Directors participated in the “First Project Managers Industry Global Meeting” held at the Splendid Palace Hotel in Istanbul on 13–14 January 2018.

RHI President Alptekin Tizer made the opening speech and announced 2018 as “the year of active sharing and implementation of information, solutions and experiences”.

Chief Advisor to Board, Mehmet Altan Draz, made a comprehensive presentation on the subject of contract management. Dr. Erman Ilıcak participated in the sessions and gave very important messages about RHI and RHI’s employees. “We grew up with you and we will continue to grow with you,” he said. He encouraged the opening up of new markets in different countries.

News From Sites RHI BOARD MEMBERS VISIT HEAVY LIFTING ON ZAPSIB-2 ECU ZAPSIB-2 ECU PROJECT PROJECT RHI’s Sr. Vice-President and CEO, Mustafa Kemal Ozakay, The pipeline, which connects two pieces of equipment and COO Hakan Malta visited the ZapSib-2 ECU Project lo- identified by the numbers 21-C-2710 and 21-C-2810, has been cated in Tobolsk, Tumen Region, Russia. They met with RHI successfully installed at the construction site on the managers and employees and were updated on the current continuing Sibur ZapSib-2 Ethylene Cracker Unit Plant status of the plant’s construction. project. This pipeline is the heaviest pipe element at the ZapSib-2 Project, with a total weight of 342 tons. It was assembled in four parts, which were installed in turn. The heaviest of the four parts weighed 111 tons. The total progress of the project now stands at 48.05%. It is planned to be completed in May 2019.

To t a l w e i g h t : 3 4 2 t o n s Length: 119.902 meters Diameter: 128 inch

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News From Sites BOTAŞ LNG: RHI PERSONNEL VOLUNTEERED TO DONATE BLOOD We received an Appreciation Letter from BOTAŞ LNG Import Terminal Manager, Nigar Aygün, for Renaissance’s support of and participation in a blood donation campaign on 7 March 2018. RHI’s staff who took part in the realization of the Marmara Ereğlisi LNG Terminal Sendout Capacity Increase Project showed great interest in this campaign.

From left to right: Mehmet Kayalar-Country Manager/Turkmenistan, Kaan Alkan-Vice President/Board Member, Ömer Yelkenci-HSE Manager, Dr. Erman Ilıcak, Bülent Tuzcu-Deputy Project Manager, Rüstem Şafak-CFO GTG: THE VISIT OF DR. ERMAN ILICAK TO SITE On December 11, 2017, Dr. Erman Ilıcak visited the GTG Plant located in Akhal Velayat, Turkmenistan. During his visit, he received information about the status of the plant’s construction. The site QHSE department prepared a presentation and introduced the Project Mission and Vision Poster as a gift.

LETTER OF APPRECIATION FROM LINDE ENGINEERING

RHI realized the construction of an LNG tank in the Portovaya LNG Production Complex in Vyborg, Russia, belonging to Gazprom, where Linde Engineering is the EPC Contractor. RHI received a Letter of Appreciation from Linde Engineering’s HSE Department for the professional approach to installing the roof of the LNG storage tank, one of the most difficult operations in terms of job safety in the field. The letter says in part; “... We would like to express special thanks to the members of the RHI team who made the greatest contribution to the health and safety aspects of the roof installation. Linde AG Linde Engineering Division

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Events BUDAPEST/HUNGARY PARTNER-CLIENT DINNER OF MVM OVIT ZRT. AND MVM ERBE ZRT. RHI VP, Business Development Ahmed Abdullayev was invited to partner-client dinner of MVM OVIT Zrt. and MVM ERBE Zrt. which was held on January 17, 2018.

Dr. Norbert Korom - MVM CEO, Ahmed Abdullayev-Vice-President, Business Development

RHI Team was led by Ahmed Abdullayev, Vice-President, 4th CENTRAL & EASTERN EUROPE Business Development. NUCLEAR INDUSTRY CONGRESS The conference focused on the latest projects and contract RHI was represented at the 4th Central & Eastern Europe Nuclear opportunities in all CEE countries: Hungary, Slovakia, Bulgaria, Industry Congress held on 18–19 January 2018. Finland, Lithuania, Romania, Poland, the Czech Republic and Ukraine. ISTANBUL/TURKEY RHI Project Coordinator, Aykut Tor, made RHI’s presentation and 5th INTERNATIONAL NUCLEAR pointed out that we want to move RHI’s global arena experience to planned nuclear power plant projects. Tor also noted that nuclear projects will be a new field of experience for Turkish POWER PLANTS SUMMIT firms. RHI became a Platinum Sponsor in the V. International Nuclear Power Plants Summit 2018 (INPPS), which was held on 6–7 March 2018 at the Pullman Istanbul Convention Center. INPPS offered an unique opportunity to be informed of the latest developments in the nuclear energy sector, capturing a large growth rate in Turkey’s nuclear power plants. The summit was held with the participation of nearly 100 companies from South Korea, France, , Russia, Japan, China and Finland, which are leaders in the nuclear industry.

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Events TOKYO/JAPAN TURKISH–JAPAN CONTRACTORS ASSOCIATION CONFERENCE On 12–13 March 2018, a Turkish delegation drawn from the Ministry of the Economy, Turk Eximbank, Turkish Contructors Association and leading Turkish construction companies, headed by TC Economy Minister Nihat Zeybekci, visited Japan to participate in the Turkish–Japan Contractors Association Conference. Kenichi Noguchi, Commercial Director of the Japan Office, represented RHI at the conference. It was a big gathering, with more than 100 participants from the Japanese side. RHI activities were effectively introduced in the presentation of Japanese governmental organizations. It was a good opportunity to promote RHI to the EPC industries in Japan. Social Life CELEBRATION OF 8th MARCH All women working in RHI Head Office in Istanbul met at a President Alptekin Tizer and General Manager Celal Toroğlu special traditional lunch that was organized and customized to accompanied and congratulated the ladies at lunch. honor Women’s Day on 8 March 2018. Women make up %28 of the workforce in our HQ in Istanbul.

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Rönesans Holding News LAKHTA CENTER RISES WITH HIGH-TECH TOWER CRANES The Lakhta Center Project, which is being carried out by Renaissance Construction and which will be the tallest building in Europe when completed, at 462 meters, has 10 tower cranes with 1395 meters length and varying features. The high-tech cranes, tailor-made for the project, can lift loads 176 m. per minute and lift 64 tons.

RÖNESANS’ SIGNATURE MOSCOW SKYSCRAPER CLINCHES A “BEST INTERNATIONAL” AWARD After Europe, Rönesans’ best-selling project, , a mega skyscraper sitting on Moscow’s landmark Moscow City, has topped its global competitors as well. The project is located at “Moscow City”, the city’s business center and the “symbol of the 21st century”. The matchless concept, architectural solutions and breathtaking view have brought Neva Towers the accolade of being one of the most successful projects in Moscow. The project received huge attention from the Russian people as well as foreign businesspeople, with Chinese investors predominating. The product of a total of $1.2 billion in investment, and a breath of fresh air in the Russian mixed-use development industry, Neva Towers is a Rönesans Holding project.

THE OSCARS OF REAL ESTATE Under construction by Renaissance Construction, a subsidiary of Rönesans Holding, and set for completion by 2020, Neva Towers is not only breaking sales records with its outstanding qualities but is also garnering awards, honoring our country. Following recent achievements in Europe, the project has now won the most prestigious global award in its category. Shortly after taking home the European Property Award for “Best Residential High-Rise Development Project” and “Best Mixed-Use Architecture” in London, Neva Towers now shines at the “International Property Awards”, also known as the Oscars of real estate, winning over regional finalists. A multidisciplinary jury of 70 members evaluated finalists, and Neva Towers outscored a number of quality projects from different parts of the world, from the U.S. to Dubai, Hong Kong and Australia.

“Renaissance” is the registered brand name of Rönesans Holding. “Renaissance Heavy Industries” and “RHI” are registered brand names of Rönesans Endüstri Tesisleri İnşaat San. ve Tic. A.Ş. 8