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Annual Report Annu a L Rep Or T Fields of Activity Engineering & Construction Power Generation Real Estate Trade 2019 L REPORT L 2019 ENKA İNŞAAT VE SANAYİ A.Ş. ENKA İNŞAAT VE SANAYİ A.Ş. SANAYİ VE İNŞAAT ENKA ANNUA ANNUAL REPORT CONTENT 2019 01 Companies .......................................................................................... 8 ENKA İNŞAAT VE SANAYİ A.Ş. 02 General Assembly Meeting ................................................................ 9 03 Board of Directors .............................................................................. 10 ANNUAL REPORT 03 Chairman’s Message .......................................................................... 12 04 Engineering & Construction ............................................................... 16 04.1 Oil, Gas & Petrochemicals ........................................................................ 18 Fields of Activity 04.2 Power Plants .......................................................................................... 42 Engineering & Construction 04.3 Infrastructure Projects ............................................................................ 52 Power Generation 04.4 Building Works Projects .......................................................................... 60 Real Estate 05 Group Companies .............................................................................. 68 06 Power Generation .............................................................................. 92 Trade 07 Real Estate ........................................................................................ 96 08 Trade ................................................................................................. 112 09 Social Activities .................................................................................. 122 10 Reports ............................................................................................... 160 10.1 Corporate Governance ........................................................................... 162 10.2 Independent Auditor’s Report ................................................................. 181 4 5 KMPG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. İş Kuleleri Kule 3 Kat:1-9 Levent 34330 İstanbul Tel +90 212 316 6000 Fax +90 212 316 6060 b) The Group’s management prepares its annual report in such a way that it reflects the operations of the year and www.kpmg.com.tr the consolidated financial position of the Group accurately, completely, directly, true and fairly in all respects. In this report, the financial position is assessed in accordance with the Group’s consolidated financial statements. The annual report shall also clearly indicates the details about the Group’s development and risks that might be encountered. The CONVENIENCE TRANSLATION INTO ENGLISH OF INDEPENDENT AUDITOR’S REPORT assessment of the Board of Directors on these matters is included in the report. ON THE BOARD OF DIRECTORS’ ANNUAL REPORT ORIGINALLY ISSUED IN TURKISH c) The annual report also includes the matters below: To the Shareholders of Enka İnşaat ve Sanayi Anonim Şirketi - Significant events occurred in the Group after the reporting period, Opinion - The Group’s research and development activities. We have audited the annual report of Enka İnşaat ve Sanayi Anonim Şirketi (the “Company”), its subsidiaries and - Financial benefits such as wages, premiums and bonuses paid to board members and key management personnel, joint operations (collectively referred to as “the Group”), for the period between 1 January 2019 and 31 December appropriations, travel, accommodation and representation expenses, benefits in cash and kind, insurance and similar 2019, since we have audited the complete set consolidated financial statements for this period. guarantees. In our opinion, the consolidated financial information included in the annual report and the analysis of the Board When preparing the annual report, the Board of Directors also considers the secondary legislation arrangements of Directors by using the information included in the audited financial statements regarding the position of the issued by the Ministry of Trade and related institutions. Group are consistent, in all material respects, with the audited complete set of consolidated financial statements and information obtained during the audit and provides a fair presentation. Auditor’s Responsibility for the Audit of the Annual Report Our objective is to express an opinion on whether the consolidated financial information included in the annual report Basis for Opinion in accordance with the TCC and the Communiqué and analysis of the Board of Directors by using the information included in the audited financial statements regarding the position of the Group are consistent with the audited We conducted our audit in accordance with the standards on auditing issued by the Capital Markets Board of consolidated financial statements of the Group and the information obtained during the audit and give a true and fair Turkey and Standards on Auditing which is a component of the Turkish Auditing Standards issued by the Public view and form a report that includes this opinion . Oversight, Accounting and Auditing Standards Authority (“POA”) (“Standards on Auditing issued by POA”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Annual Report We conducted our audit in accordance with the standards on auditing issued by the Capital Markets Board of Turkey section of our report. We declare that we are independent of the Group in accordance with the Code of Ethics for and Standards on Auditing issued by POA. These standards require compliance with ethical requirements and planning Auditors issued by POA (POA’s Code of Ethics) and the ethical requirements in the regulations issued by POA that of audit to obtain reasonable assurance on whether the consolidated financial information included in the annual are relevant to audit of financial statements, and we have fulfilled our other ethical responsibilities in accordance report and analysis of the Board of Directors by using the information included in the audited financial statements with the POA’s Code of Ethics and regulations. We believe that the audit evidence we have obtained is sufficient regarding the position of the Group are consistent with the consolidated financial statements and the information and appropriate to provide a basis for our opinion. obtained during the audit and provides a fair presentation. Additional paragraph for convenience translation to English Auditor’s Opinion on Complete Set of Consolidated Financial Statements The complete set of consolidated financial statements prepared in accordance with the Turkish Financial Reporting We have expressed an unqualified opinion on the complete set of consolidated financial statements of the Group Standards (“TFRS”) issued 4 March 2020 is incorporated by reference in the Annual Report presented in English for the period between 1 January 2019 and 31 December 2019 on 4 March 2020. whereas it is attached to the Annual Report presented in Turkish. In addition to the Annual Report presented in Turkish, the consolidated financial statements prepared in accordance with the International Financial Reporting Standards Board of Directors’ Responsibility for the Annual Report (“IFRS”) issued 13 March 2020 is attached to the Annual Report presented in English. In accordance with the Articles 514 and 516 of the Turkish Commercial Code numbered 6102 (“TCC”) and Communiqué on the Principles of Financial Reporting in Capital Markets numbered II – 14.1 (the “Communiqué”), KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi the Group’s management is responsible for the following regarding the annual report: A member firm of KPMG International Cooperative a) The Group’s management prepares its annual report within the first three months following the date of statement of financial position and submits it to the general assembly. Erdal Tıkmak, SMMM Partner 13 March 2020 Istanbul, Turkey KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.,a Turkish corporation and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. 6 7 ENKA İnşaat ve Sanayi A.Ş. The Board of Directors’ Annual Report Reporting Period : 01.01.2019 - 31.12.2019 Registered Company Name : ENKA İnşaat ve Sanayi A.Ş. Registration or Incorporation : 1957 Registered Country : Istanbul / Turkey Chamber of Commerce Registration Number : 68194 Paid-in Capital : 5.000.000.000 TL (Turkish Lira) 2.639.338.456 US Dollars (equivalent) BS EN ISO 9001 : 2015 Registered Certificate No : FS 57544 BS EN ISO 14001 : 2015 Registered Certificate No : EMS 71388 BS EN ISO 45001 : 2018 Registered Certificate No : OHS 71389 ASME A : 2019 Registered Certificate No : 45151 ASME U : 2019 Registered Certificate No : 45152 ASME U2 : 2019 Registered Certificate No : 45153 ASME S : 2019 Registered Certificate No : 45154 NB : 2019 Registered R Stamp : 2019 Registered Corporate Governance Rating : 9,28 (November 2019 - SAHA Kurumsal Yönetim ve Kredi Derecelendirme A.Ş.) Head Office Address : Balmumcu Mah., Zincirlikuyu Yolu No: 10, 34349 Beşiktaş / Istanbul Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Official Website : https://www.enka.com E-mail : [email protected] 8 9 COMPANIES THE GENERAL ASSEMBLY MEETING Date: 27 March 2020 ENGINEERING & CONSTRUCTION Time: 14:00 Venue: Balmumcu Mahallesi, Zincirlikuyu
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