Enka Insaat ve Sanayi A S : Consolidated Financial Statements as of March 31, 2015

SUMMARY CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31

MARCH 2015

NOTE 1 ORGA NIZA TIONS AND OPERATIONS OF THE GROUP......................... 7

NOTE 2 BASIS OF PRESENTATION ........................................................................... 7-8

NOTE 3 SEGMENTAL INFORMATION ...................................................................... 8-11

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SUMMARY CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Cas h and cas h equivalents 1.308.526 1.408.194

Financial investments 666.602 575.110

Trade receivables 727.337 720.122

Other receivables

Other receivables from related parties 225 56

Other receivables from third parties 624 626

Inventories 252.045 259.856

Prepaid expenses 71.032 100.304

Cos ts and es timated earnings in excess of billings

on uncompleted contracts 113.886 133.257

Other current as s ets 54.116 72.990

3.194.393 3.270.515

A ss ets held for s ale and dis continued operations 939 1.068

Financial investments 1.082.618 1.006.905

Trade receivables 10.665 10.579

Inves tment properties 1.799.638 1.814.215

Property, plant and equipment 1.596.594 1.625.896

Intangible as s ets

Goodwill 55.168 55.168

Other intangible as s ets 20.986 21.075

Deferred tax as s ets 53 53

Prepaid expenses 1.123 2.515

Other non-current as s ets 4.744 4.780

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SUMMARY CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Short-term borrowings 2.000 6.245

Current portion of long-term borrowings 40.471 43.148

Trade payables 518.121 537.216

Payables to employees 22.386 26.568

Other payables

Payables to related parties 1.287 1.378

Payables to third parties 25.057 29.462

Billings in exces s of cos ts and es timated earnings

on uncompleted contracts 193.220 224.087

Deferred income 300.330 323.731

Taxation on income 64.054 51.706

Provis ions

Provis ions for employee benefits 26.929 21.034

Other provis ions 60.132 56.261

Other current liabilities 40.255 41.630

Long-term borrowings 219.713 220.163

Trade payables 1.898 1.900

Other payables 26.985 27.690

Deferred income 578.917 610.079

Provis ions for employee benefits 15.284 16.294

Deferred tax liabilities 368.200 359.419

Share capital 2.230.412 2.230.412

Revaluation surplus 160.400 161.888

Currency trans lation difference (1.116.580) (994.861) Other reserves 1.986 1.986

Legal reserves and accumulated profit 3.931.015 3.757.719

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SUMMARY CONSOLIDATED STATEMENT OF INCOME FOR THE PERIOD ENDED 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

- ordinary share certificate (full cent ) - -

- ordinary share certificate (full cent ) 0,05 0,05

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SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Loss on remeasurement of defined benefit p lans - -

Changes in revaluation fund of property (986) (831)Gain aris ing during the year - -Tax effect - - Changes in t ranslat ion difference in property valuat ion increase (986) (831)

Changes in currency trans lation difference (126.335) (123.638)

Changes in cash flow hedge - -Gain aris ing during the period - -Tax effect - -

Non-controlling interes t (3.165) 11.034

Equity holders of the parent 50.089 37.829

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SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Share capit al

Revaluat ion surplus

Currency t ranslat ion

difference Ot her reserves

Legal reserves and accumulat ed

profit T ot al

Non- cont rolling

int erest s T ot al equit y

Bal an ce at 1 Jan u ary 2014 2.040.352 232.143 (206.697) 1.986 3.529.559 5.597.343 63.726 5.661.069

T ot al ot her comprehensive income - (831) (123.393) - - (124.224) (245) (124.469) P rofit for t he period - - - - 162.053 162.053 11.279 173.332

T ot al comprehensive income - (831) (123.393) - 162.053 37.829 11.034 48.863

T ransfer of depreciat ion difference

(net of deferred t ax) of revaluat ion effect - (1.175) - - 1.175 - - - Dividends paid - - - - - - (17) (17)

Bal an ce at 31 March 2014 2.040.352 230.137 (330.090) 1.986 3.692.787 5.635.172 74.743 5.709.915

Bal an ce at 1 Jan u ary 2015 2.230.412 161.888 (994.861) - 1.986 3.757.719 5.157.144 57.614 5.214.758

T ot al ot her comprehensive income - (986) (121.719) - - (122.705) (4.616) (127.321) P rofit for t he period - - - - 172.794 172.794 1.451 174.245

T ot al comprehensive income - (986) (121.719) - 172.794 50.089 (3.165) 46.924

T ransfer of depreciat ion difference

(net of deferred t ax) of revaluat ion effect - (502) - - 502 - - -

Bal an ce at 31 March 2015 2.230.412 160.400 (1.116.580) 1.986 3.931.015 5.207.233 54.449 5.261.682

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SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2014

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Profit for t he p eriod 174.245 173.332

Adjust ments to reconcile net income

to net cash used in op erat ing activit ies:

- Dep reciation and amort iz at ion of non-current assets 23.137 26.977

- Provision for emp loy ment t ermination benefit s 24 1.042

- Allowance for doubtful receivables (702) 468

- Provision for litigat ions 3.305 3.311

- Adjust ments to deferred income from electricit y sale (31.176) (22.955)

- Loss from fair value of forward transact ions 3.669 (53)

- Int erest exp ense 1.250 899

- Int erest income (16.820) (16.320)

- Dividend income (1.714) (898)

- Provision for inventory imp airment , net (137) (34)

- Gain on sale or disp osal of p rop erty , p lant and equip ment, net (149) (902)

- Valuation of investment securities 16.300 (28.470)

- Tax exp ense 51.259 55.631

222.491 192.028

M ovement s in working cap ital

Decrease / (Increase) in trade and ot her receivables 4.639 (213.933)

Decrease in cost and est imated earnings in

excess of billings on uncomp let ed contracts 19.370 1.500

Decrease / (Increase) in invent ory 7.947 (61.902)

Increase / (Decrease) in ot her current asset s

and ot her non current assets 42.326 (13.984) (Decrease) / Increase in trade and ot her p ay ables (19.096) 101.290

Increase/(decrease) in billings in excess of cost and estimated

earnings on uncomp let ed contracts (30.867) 45.464

(Decrease) / Increase in p rovision for liabilities and other liabilit ies (31.355) 14.076 (7.036) (127.489)

Income t axes p aid (26.223) (31.245) Emp loy ee terminat ion benefit s p aid (277) (323) Ne t cash gene rate d from operating acti vi tie s 188.955 32.971

Financial invest ments (183.506) 15.095

Proceeds on disp osal or sale of p rop erty , p lant and equip ment 1.463 4.566

Purchases of p rop erty , p lant and equip ment , int angible asset s

and invest ment p rop erties (35.320) (81.298) Int erest received 16.295 15.770

Dividend income 1.714 898

Short-t erm borrowings, net (4.245) (1.666)

Addition to long-term borrowings - 62.534

Rep ay ments of long-t erm borrowings (2.144) (9.250)

Int erest p aid (248) (284) Dividend p aid t o non-controlling int erests - (17)

Translation reserve (82.632) (4.025)

Cash and cash equivalents at beginning of the p eriod 1.407.194 1.271.136

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NOTES TO THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Enka İnşaat ve Sanayi Anonim Şirketi ('the Group') was established on 4 December 1967 and registered in İstanbul, Turkey, under the Turkish Commercial Code. The address of the headquarters and registered office of Enka İnşaat is Balmumcu, Zincirlikuyu Yolu No:10, 34349 Enka Binası Beşiktaş, İstanbul, Turkey.

As of 28 June 2002, Enka İnşaat merged legally with its publicly traded shareholder company, Enka Holding Yatırım Anonim Şirketi (Enka Holding), which were under the common control of Tara Holding Anonim Şirketi and Tara and Gülçelik families. As of 31 March 2015, 12.61% of the shares of Enka İnşaat is traded publicly in İstanbul Stock Exchange (ISE).

As of 31 March 2015, the average numbers of white and blue-collar personnel are respectively 4.679 and 16.672 (31 December 2014 - 5.087 and 18.754).

For the purpose of the consolidated financial statements, Enka İnşaat, its consolidated subsidiaries and its joint operations are hereinafter referred to as 'the Group'.

The Group operates in geographical areas below:

i. Turkey: engaged in diverse types of construction activities including construction of industrial and social buildings, motorways and construction and operation of natural gas fired electrical energy generation facilities.

ii. Russian Federation, Turkmenistan, Georgia and Kazakhstan: engaged in construction activities and also in investment and development of real estate properties and shopping malls in Moscow, Russia.

iii. Engaged in construction activities in Gabon, Djibouti, Mauritania and Equatorial Guinea in Africa; Saudi

Arabia, Oman, Iraq and Afganistan in Asia and also in Dominican Republic.

iv. Europe: engaged in construction and trading activities in Romania, the Netherlands, Switzerland, Germany and Kosovo.

The summary consolidated financial statements of the Group are derived from condensed consolidated financial statements of the Group for the period ended 31 March 2015 prepared in accordance with the accounting principles promulgated by the Turkish Capital Market Board (CMB).

The summary consolidated financial statements are presented in U.S. Dollars (USD) and all values are rounded to the nearest thousand ('000) except when otherwise indicated. There is no difference in the summar y consolidated financial statements derived from the condensed consolidated financial statements prepared in accordance with the accounting policies promulgated by CMB, except for the use of USD and TL as the presentation currency, respectively.

This summary interim financial information does not contain all the information required for the preparation of the annual financial statements, and should be read in conjunction with the annual consolidated financial statements of the Group for the year ended 31 December 2014 prepared in accordance with International Financial Reporting Standards (IFRS).

Comparative information and reclassification of prior year financial statements

The Group prepares comparative consolidated financial statements, to enable readers to determine financial position and performance trends. For the purposes of effective comparison, comparative consolidated financial statements can be reclassified when deemed necessary by the Group, where descriptions on significant differences are disclosed. In the current year, the Group had made the reclassifications below in order to confront current year's presentation:

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NOTES TO THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Comparative information and reclassification of prior year financial statements (cont'd)

 As the Group has classified Pimaş Plastik İnşaat Malzemeleri A.Ş's ('Pimas') operations to the discontinued operations, the consolidated statement of income for the period ended 31 March 2014 and segmental information note is reclassified in accordance with IFRS 5 Non-Current Assets Held For Sale and Discontinued Operations. The reclassification does not have any impact on prior period equity and net income.

Construction

cont racts Rental
1 January - 31 M arch 2015

T rade and
manufacturing Energy Eliminations Consolidated
Revenues 358.354 108.302 56.085 757.930 - 1.280.671

Inter-segment revenues 27.067 - 827 2.926 (30.820) - Cost of revenues (297.881) (28.861) (45.618) (684.856) - (1.057.216) Inter-segment cost of revenues (27.307) - (827) (2.926) 31.060 - Gross profit 60.233 79.441 10.467 73.074 240 223.455
M arketing, selling and
dist ribution exp enses (2.426) (1.300) (2.534) (50) - (6.310)
Administrative exp enses (18.853) (3.090) (2.745) (2.249) 100 (26.837) Ot her op erating income 6.768 669 164 1.048 - 8.649
Ot her op erating exp enses (-) (12.329) (487) (618) (1) 36 (13.399)

Profit from ope rations 33.393 75.233 4.734 71.822 376 185.558

Invesment income 75.526 13 - 9 - 75.548
Investment exp enses (-) (27.181) (17) (15) - - (27.213)

Profit from ope rations

Before Financial Income /(Expe nse s) 81.738 75.229 4.719 71.831 376 233.893

Financial income 7.268 893 2.802 5.361 (563) 15.761
Financial exp enses (-) (21.622) (1.606) (1.048) (572) 698 (24.150)

Profit be fore tax 67.384 74.516 6.473 76.620 511 225.504

T axat ion charge current (-) (9.833) (11.065) (1.238) (16.435) - (38.571) Deferred taxation income/ (exp enses) (2.101) (3.582) (357) (6.648) - (12.688) Profit for the ye ar from

continuing ope rations 55.450 59.869 4.878 53.537 511 174.245

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NOTES TO THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2015

(Amounts are expressed in thousands of U.S. Dollars ('USD') unless otherwise stated.)

Const ruction

contract s Rental

31 M arch 2015
Trade and
manufacturing Energy Consolidat ed
Segment asset s 3.652.194 1.942.909 263.360 1.908.026 7.766.489

Unallocated assets 432

Total assets 3.652.194 1.942.909 263.360 1.908.026 7.766.921

Segment liabilit ies 875.395 447.057 139.244 1.042.255 2.503.951
Unallocated liabilit ies 1.288

Total li abi l ities 875.395 447.057 139.244 1.042.255 2.505.239

Const ruction

1 January - 31 M arch 2015
Trade and

Other segment informati on

Cap ital exp enditures

Prop erty , p lant and equip ment &

contract s Rental
manufacturing Energy Consolidat ed
investment p rop erty 9.143 25.295 14 321 34.773

Int angible asset s 168 90 9 280 547

Total capital e xpenditure s 9.311 25.385 23 601 35.320

Dep reciat ion exp ense 7.972 1.646 474 12.643 22.735
Amort isat ion 315 19 39 29 402
Construction

cont racts Rent al

1 January - 31 M arch 2014
Trade and

manufacturing Energy Eliminat ions Consolidated
Revenues 438.053 120.182 62.564 838.197 - 1.458.996

Int er-segment revenues 73.427 - 3.171 6.178 (82.776) - Cost of revenues (381.748) (31.377) (49.902) (761.981) - (1.225.008) Int er-segment cost of revenues (77.718) - (619) (6.205) 84.542 - Gross profi t 52.014 88.805 15.214 76.189 1.766 233.988
M arket ing, selling and
distribut ion exp enses (2.982) (1.625) (2.431) - - (7.038)
Administrat ive exp enses (15.972) (4.316) (3.446) (2.518) 202 (26.050) Ot her op erating income 8.800 1.232 537 705 (35) 11.239
Ot her op erating exp enses (-) (14.695) (374) (1.098) (5.008) 35 (21.140)

Profit from ope rations 27.165 83.722 8.776 69.368 1.968 190.999

Invesment income 55.258 5 - 23 - 55.286
Investment exp enses (-) (9.550) (9) - - - (9.559)

Profit from ope rations

Be fore Fi nanci al Income/(Expenses) 72.873 83.718 8.776 69.391 1.968 236.726

Financial income 9.374 6.358 515 1.476 (1.624) 16.099
Financial exp enses (-) (6.807) (13.617) (1.408) (978) 1.481 (21.329)

Profit before tax 75.440 76.459 7.883 69.889 1.825 231.496

Taxat ion charge current (-) (14.951) (13.523) (2.032) (13.708) - (44.214) Deferred t axation income/ (exp enses) (4.310) (4.176) 72 (3.456) - (11.870) Profit for the year from

continuing operations 56.179 58.760 5.923 52.725 1.825 175.412

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