Financial & Operational Highlights

Transcription

1 Financial & Operational Highlights 1/

2 Content 2017 January September Financial Results Detailed Information by Operating Segments Contracting Group Agri Industry Group Real Estate Development Group 2

3 Main Financial Indicators Basic Balance Sheet Items (Million TRY) 31 Dec Sep 17 Change (%) Total Assets Shareholders' Equity Jan - 01 Jan- Basic Income Statement Items (Million TRY) 30 Sep Sep 17 Change (%) Revenues Gross Profit EBITDA* Operating Profit Income Before Tax Net Profit for the Period * Earnings before interest, tax, depreciation and amortization 3

4 Sales Revenue Consolidated (Million TRY) By Segment (Million TRY) /9 2017/ /9 2017/9 Contracting Agri Industry Real Estate Other By Segment (%) 40,8% 2016/9 0,7% 0,6% 32,6% 2017/9 6,2% 0,5% 57,9% 60,7% 4

5 EBITDA Consolidated EBITDA (Million TRY) 683 EBITDA by Segment (Million TRY) /9 2017/ /9 2017/ Contracting Agri Industry Real Estate Other -10 5

6 EBITDA Margin Consolidated (%) By Segment (%) 10,2 13,5 7,1 11,1 16,1 20,9 2,2 2016/9 2017/9 2016/9 2017/9-34,0-33,9-37,8 Contracting Agri Industry Real Estate Other 6

7 Net Profit Consolidated (Million TRY) By Segment (Million TRY) /9 2017/9 2016/9 2017/ Contracting Agri Industry Real Estate Other 7

8 Net Profit Margin Consolidated (%) By Segment (%) 2016/9 2017/9 160,6 10,2 60,2 6,3 12,4 16,8 0,7 7,2-0,1-32,1 2016/9 2017/9 Contracting Agri Industry Real Estate Other 8

9 Net Cash Position* Consolidated (Million TRY) By Segments (Million TRY) ** 947 ** 2016/ / / / Contracting Agri Industry Real Estate Other * Net of bank loans, leasing payables, cash and cash equivalents. ** TRY1,297 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project is included. 9

10 Content 2017 January September Financial Results Detailed Information by Operating Segments Contracting Group Agri Industry Group Real Estate Development Group 10

11 Contracting Group Backlog as of 30 September 2017 Expected End Current Contract Revenue Based Completion Remaining Amount Project Location Dates Price Tekfen Portion Rate (US$) Prov. of Pipeline and Facilities Repair Services for BTC Turkey Turkey $ $ 97,3% TANAP Project Lot3 Turkey $ $ 83,0% TANAP Compressor and Metering Stations Turkey $ $ 32,8% Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey $ $ 11,1% TANAP Management Office Fit Out Civil Works Turkey $ $ 0,0% Star Aegean Refinery Turkey $ $ 47,8% TURKEY TOTAL New Management Office Project of SOCAR Azerbaijan $ $ 99,2% Shah Deniz Stage 2 Fabrication of Offsite Facilities Azerbaijan $ $ 99,4% Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal Azerbaijan $ $ 91,1% Ministry of Tax Tower Azerbaijan $ $ 6,5% AZFEN Projects* Azerbaijan $ $ 89,0% AZERBAIJAN TOTAL Jeddah Janbu Pipeline S. Arabia $ $ 5,0% SAUDI ARABIA TOTAL Al Khor Expressway Qatar $ $ 12,3% Main Works for the Fifth Precinct Stadium Qatar $ $ 5,8% Design and Construct Service Road Enhancement to North Road Corridor Qatar $ $ 88,5% East Industrial Road Qatar $ $ 0,0% QATAR TOTAL Installation Services for Dehydrators & Desalters Iraq $ $ 0,0% IRAQ TOTAL Construction Compound Main Works Kazakhstan $ $ 86,8% FGP Temporary Construction Facilities Kazakhstan $ $ 20,1% KAZAKHSTAN TOTAL TOTAL TOREN & Gazdepo Underground Gas Storage Project** Turkey $ $ 0,0% Expected end date refers to the mechanical completion date. * Not included in the consolidated revenues. Consolidated using equity method. ** The contracted work for this project will start as soon as the investor companies provide the project financing. 11

12 Contracting Group Growth Backlog (USD million) Abroad Turkey /9 The backlog, which was at USD 3.7 billion as of 2016-end, remained almost flat as of end of September 2017 at USD 3.6 billion, with the effect of the new project awards in Turkey, Qatar and Iraq as well as the increase in the size of the terminal project in Azerbaijan. As of end of September 2017, the backlog outside Turkey adds up to 82% of total backlog. 12

13 Contracting Group Ongoing Projects Backlog Breakdown by Regions Backlog by Project Types Caspian 7% Turkey 18% Transpota tion 63% Industrial Facilities 9% Pipeline 20% Middle East 75% Buildings 8% Region Million USD Middle East Turkey 639 Caspian Region 252 Total Project Type Million USD Transportation Pipeline 697 Industrial Facilities 311 Buildings 284 Total

14 Contracting Group Revenues & EBITDA Margin Revenues (Million US$) ve EBITDA Margin (%) Revenue Margin 13,2% 12,7% 12,0% 8,5% 11,2% 9,3% ,3% ,1% ,9% ,7% 9,3% 7,6% ,4% -4,3% E 15% 10% 5% 0% -5% The EBITDA margin which was at 12.0% as of end of 2017Q3, is expected to be realized at 9.7% for FY

15 Content 2017 January September Financial Results Detailed Information by Operating Segments Contracting Group Agri Industry Group Real Estate Development Group 15

16 Agri-Industry Group Developments FERTILIZERS Global Developments Price fluctuation continued in the third quarter of On a yearly basis, Ammonia prices decreased by 5% Average urea price increased by 13% as a result of a sharp increase in the second half of the third quarter Sale prices of phosphate fertilizers and ammonium nitrate increased by 1% and 25%, respectively. Developments in Turkey On April 6, 2017, a new regulation has been announced by the government concerning packaging and traceability of fertilizers from the manufacturer to the end user. This new regulation outlines using cameras in warehouses and sales points as well as special tracking systems in and outside of packages. 16

17 1.000 Ton Ton Toros Agri Quarterly Cumulative Domestic Fertilizer Sales , ,279 1, , /3Q 2017/3Q /9M 2017/9M Dealer Sales Wholesale Dealer Sales Wholesale Sales volume decreased by 6% in the first nine months; whereas, it increased by 32% y-o-y in the third quarter. In spite of the increase in sales volume in the third quarter of 2017 as compared to the same period of 2016, there was a decrease in the first nine months of 2017 on a y-o-y basis. The main reason of the decrease is sales boost effect stemming from VAT deduction in the first quarter of Total sales volume in 2017/09 reached 1,497K tons including the export volume of 228K tons. 17

18 Toros Agri Domestic Fertilizer Sales by Products Quarterly (1,000 Tons) Cumulative (1,000 Tons) 2016/3Q 2017/3Q 2016/9M 2017/9M CAN* AN 33** AS UREA DAP COMP CAN* AN 33** AS UREA DAP COMP Sales volume of AN33 has decreased compared to 2016/Q2 due to the nitrate ban starting from June Demand for calcium ammonium nitrate and ammonium sulphate fertilizers maintained its increase in the third quarter due to the restrictions on the usage of AN fertilizers. 2016/Q3 2017/Q3 Difference 2016/9M 2017/9M Difference AVERAGE DOMESTIC PRICE (USD/TON) % % *Including AN26 and CAN21 sales **Sales with official permission 18

19 Toros Agri Fertilizer Production Quarterly (1,000 tons) Cumulative (1,000 tons) 2016/3Q 2017/3Q /9M 2017/9M CAN* AN DAP Comp Total CAN* AN DAP Comp Total CUR 2017/Q3: 81% (2016/Q3: 55%) CUR 2017/9M: 80% (2016/9M: 72%) *Including AN26 and CAN21 sales 19

20 Toros Agri Fertilizer Procurement Quarterly (1,000 tons) Cumulative (1,000 tons) 2016/3Q 2017/3Q 2016/9M 2017/9M AS Urea Total Procurement AS Urea Total Procurement 20

21 Agri-Industry Group Terminal Services Handled Quantity (1,000 Tons) 4,458 5,082 Leased capacity (1,000 m 3 ) 1,460 1,343 Dry/Liquid Bulk-General Cargo* 2016/9M 2017/9M Petroleum products 2016/9M 2017/9M Handling quantity in dry/liquid bulk-general cargo segment increased by 14% as compared to 2016/9M. Occupancy rate of petroleum products tanks was 76.6% (2016/9M: 72.1%). * Handling quantity for petroleum products is not included. 21

22 Million TRY Agri-Industry Group Million TRY Revenue, EBITDA and Net Profit Million TRY 302 Revenue EBITDA Net Profit /3Q 2017/3Q Agri Terminal 2016/3Q 2017/3Q Agri Terminal 2016/3Q 2017/3Q Agri Terminal Agri segment s revenue increased due to the higher sales volume of fertilizers. Improvements in production costs had positive effect impact on the profitability of the third quarter. Terminal segment s revenue and profitability improved due to higher handling volume in dry/liquid bulk-general cargo product group as well as higher occupancy rate in petroleum products. Average domestic sales price: 2016/Q3: 946 TRY/ton 2017/Q3: 945 TRY/ton 22

23 Agri-Industry Group Million TRY Million TRY Revenue, EBITDA and Net Profit Million TRY 1,393 Revenue EBITDA Net Profit , ,294 1, /9M 2017/9M Agri Terminal 2016/9M 2017/9M Agri Terminal 2016/9M 2017/9M Agri Terminal Agri segment s revenue increased due to the increase in average domestic sales prices. Improvements in production costs positively affected profitability of the company in the first nine months. Average domestic sales price: 2016/9M: 876 TRY/ton 2017/9M: 993 TRY/ton 23

24 Content 2017 January September Financial Results Detailed Information by Operating Segments Contracting Group Agri Industry Group Real Estate Development Group 24

25 Tekfen Real Estate Development Group Real Estate Development Group Organization Tekfen Real Estate Dev. Inv. and Trade Co., Inc Business Line: Investment, Development, Project Management, Asset Management Tekfen Tourism and Management Co., Inc Business Line: Facility Management Florya Real Estate Inv. Const. Tourism Co., Inc Business Line: Investment, Development 25

26 Real Estate Development Group Projects Project Project Function Location Start Date of Poject End Date of Project Estimated Project Size (million TRY) HEP Istanbul Project Residential Istanbul Sep.14 June Izmir Mixed Use Mixed Use Izmir Mar.16 * 1,287** Topkapı Project Residential Istanbul Apr.16 Sept Topkapı Project II Residential Istanbul Sept *** 200 **** BREAKDOWN BY FUNCTION (m²) Project Residential Sellable/ Leasable Area Office Sellable/ Leasable Area Retail Sellable/ Leasable Area Esenyurt Project 180,155-2,595 Izmir Project* 32,519 62,247 46,000 Topkapı Project 45,062-2,118 Topkapı Project II * As per the new regulation, excavation and soil improvement works have been suspended due to EIA report requirement. ** Tekfen has 50% share in the project. *** Project schedule will be set according to zoning process. **** The project will be developed via renue share model and estimated Project size refers to Tekfen share. 26

27 Real Estate Development Ongoing Projects Esenyurt Housing Project Overview: Developed on 56,800 m² land which is purchased in May 2013 Construction permit granted on December 2013 for the project including 1,424 residential and 25 retail units Project Size: TRY 647 million Tekfen Share: 100% Project Summary : Total Sellable Space: Housing: 180,155 m², Retail: 2,595 m² Construction Period Start: Q2/2015 Completed as Q2/2017 The project maintains the vision and standards that have made Tekfen one of the pioneers in the sector, with the creation of living space that will bring along a particularly significant difference. The Project has been launched on October 30th, residential units having a total area of m² have been sold as of September 30th Total sales amount is TRY320 million and 924 residences have been delivered to the new owners. Investment Rationale: Esenyurt property is in a sought-after area because of its developing transportation infrastructure, the city s growth dynamics, and its location on the intersection between the E5 highway and TEM motorway 27

28 Real Estate Development Group Ongoing Projects Izmir Mixed Use Transaction Overview: 50%-50% partnership with Rönesans Group The largest mixed use (residential, office and shopping mall) project in Izmir Total Project Size : TRY 1,287 million Tekfen Share : 50 % Project Summary: Total Sellable/Leasable area (GLA) : Shopping Mall 46,000 m²; Home Office 62,247 m² and Residential 32,519 m² Estimated const. period: Q1/2016 Q2/2020 Landmark project for the city of Izmir Investment Rationale: Location within the new planned CBD of Izmir High accesibility and visibility through the main arteries Construction permit process is ongoing. As per new regulation, excavation and soil improvement works have been suspended due to EIA report requirement. 28

29 Real Estate Development Ongoing Projects Topkapı Housing Project Demolishment works have been completed following the urban transformation approval. The zoning plan is approved by the municipality and the environment and urban ministry. Design works have been completed and merging of the plots have been carried out respectively, zoning status has been obtained and the construction permit has been approved by the municipality. Pre-sales is planned to started in November Overview: A total of 13,793 m² net land area has reached with the acquisition of the adjusted plots of Toros Tarım and Topkapı Vitaminli Yem Sanayi A.Ş. in Nov Following the obtained construction permit, the sales of the residential project supported by retail units is planned to be started in November 2017 and the project is planned to be completed within 24 months. Project Size: TRY 413 million Tekfen Share: 100% Project Summary : Total Sellable Space: Housing: 45,062 m², Retail: 2,118 m² Construction Period Start: Q3/2017 Complete: Q3/2019 Investment Rationale: High accessibility, near E-5 highway and intersection point for tram, light metro and metrobus lines. Rapid transformation of light industrial area to residential units supported by the zoning plans. Residential demand has increased after new universities and hospitals became operational. 29

30 Real Estate Development Ongoing Projects Topkapı Housing Project II A view from Courtyard of the existing Topkapı Project 1/5000 and 1/1000 zoning plans of one plot were required to be renewed. After the signing of the contract, negotiations with the city planning offices have been initiated in coordination with the municipality for the renewal of the plans. Project will start upon the completion of zoning process. Overview: A revenue sharing agreement was signed on 28/09/2017 to develop a residential project on the neighboring plots totaling 20k m² area of the existing Tekfen Topkapı project, currently there is an active textile production on the plots. The construction permit will be obtained after zoning plan revision, and accordingly the sales will be started with the construction works and the project is planned to be completed within 24 months. Total Tekfen Project Share: TRY 200 million Project Summary : Total Sellable Space: Housing: 44,467 m² Construction Period Start: Q4/2017 Complete: * Investment Rationale: High accessibility, near E-5 highway and intersection point for tram, light metro and metrobus lines. Rapid transformation of light industrial area to residential units supported by the zoning plans. Residential demand has increased after new universities and hospitals became operational. The project will be the second phase of existing Topkapı Project. It is aimed to develop a competitive project in terms of sales price with the gained infrastructure and experience. (*) Construction schedule will be set acoording to zoning process. 30

31 Disclaimer Tekfen Holding A.S. (the Company ) has prepared this presentation (the Presentation ) in order to provide investors with general information about the Company. The contents of this Presentation is based on public information and on data provided by the Company management. Neither the Company nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation. This Presentation does not constitute an offer or invitation to purchase the securities of the Company. Investors and prospective investors interested in the securities of the Company are required to conduct their own independent investigations and appraisal of the business, financial condition of the Company and the nature of its securities. Except for the historical information contained herein, the statements made in this Presentation with respect to the Company s plans, strategies, beliefs and other prospective matters are forward-looking statements that involve risk and uncertainty that are not under the Company s control which may cause actual results to differ materially from those anticipated. Except where otherwise indicated, this Presentation speaks as of the date hereof. We undertake no duty to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. 31

32 Contact Information For General Questions and Requests for Reports: Çağlar Gülveren, CFA Investor Relations and Corporate Governance Coordinator Tel: