Financial & Operational Highlights

Transcription

1 Financial & Operational Highlights

2 Content 2018 January March 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 Mar 18 Change (%) Total Assets Shareholders' Equity Jan - 01 Jan- Basic Income Statement Items (Million TRY) 31 Mar Mar 18 Change (%) Revenues Gross Profit EBITDA* Operational Profit Income Before Tax Net Profit * Earnings before interest, tax, depreciation and amortization 3

4 Sales Revenue Consolidated (Million TRY) By Segment (Million TRY) 2,266 1, /3 2018/3 1, /3 2018/3 Contracting Agri Industry Real Estate Other By Segment (%) 41% 2017/3 2.6% 0.5% 33% 2018/3 1.1% 0.4% 56% 66% 4

5 EBITDA Consolidated EBITDA (Million TRY) EBITDA by Segment (Million TRY) /3 2018/ /3 2018/ Contracting Agri Industry Real Estate Other 5

6 EBITDA Margin Consolidated (%) By Segment (%) /3 2018/ /3 2018/3 Contracting Agri Industry Real Estate Other 6

7 Net Profit Consolidated (Million TRY) By Segment (Million TRY) /3 2018/ /3 2018/3 Contracting Agri Industry Real Estate Other -9 7

8 Net Profit Margin Consolidated (%) By Segment (%) /3 2018/ /3 2018/ Contracting Agri Industry Real Estate Other 8

9 Net Cash Position* Consolidated (Million TRY) By Segments (Million TRY) 2,690 1,664 ** 2017/ /3 2,136 1, /12** 2018/3** Contracting Agri Industry Real Estate Other * Net of bank loans, leasing payables, cash and cash equivalents. ** An advance payment amount of TRY1,196 million as of year-end 2017 and TRY1,039 million as of 2018Q1 collected for the ongoing Al Khor Motorway Project in Qatar is included in the figures. 9

10 Content 2018 January March Financial Results Detailed Information by Operating Segments Contracting Group Agri Industry Group Real Estate Development Group 10

11 Contracting Group Backlog as of 31 March 2018 Expected End Current Contract Revenue Based Remaining Amount Project Location Dates Price Tekfen Portion Completion Rate (US$) Prov. of Pipeline and Facilities Repair Services for BTC Turkey Turkey 15/12/ ,439,638 $ 101,439,638 $ 95.1% 4,962,397 TANAP Project Lot3 Turkey 25/12/ ,938,215 $ 581,938,215 $ 97.9% 12,437,673 TANAP Compressor and Metering Stations Turkey 31/05/ ,487,823 $ 461,487,823 $ 56.3% 201,576,440 Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 30/06/ ,366,506 $ 157,183,253 $ 18.5% 128,117,283 Star Aegean Refinery Turkey 30/06/ ,000,000 $ 155,000,000 $ 78.4% 33,449,707 Recieving Terminal Civil Works Turkey 13/12/ ,696,135 $ 121,696,135 $ 5.2% 115,412,237 TÜPRAŞ İzmit Refinery Maintenance & Repair Works Turkey 31/01/2019 9,622,159 $ 9,622,159 $ 0.0% 9,622,159 Provision of Civil / Structural Construction for BTC Turkey Turkey 31/01/ ,601,987 $ 35,601,987 $ 0.0% 35,601,987 TURKEY TOTAL 541,179,883 Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal Azerbaijan 15/03/2018 1,300,000,000 $ 476,682,486 $ 98.7% 6,103,181 Ministry of Tax Tower Azerbaijan 31/08/ ,161,685 $ 94,161,685 $ 6.5% 88,087,173 AZFEN Projects* Azerbaijan 30/11/2019 2,141,509,166 $ 856,603,666 $ 89.9% 87,750,870 AZERBAIJAN TOTAL 181,941,224 Jeddah Janbu Pipeline S. Arabia 28/12/ ,654,285 $ 299,654,285 $ 11.7% 264,525,543 SAUDI ARABIA TOTAL 264,525,543 Al Khor Expressway Qatar 25/11/2019 2,082,191,781 $ 2,082,191,781 $ 36.8% 1,316,108,023 Main Works for the Fifth Precinct Stadium Qatar 05/12/ ,641,403 $ 172,320,702 $ 9.0% 156,739,023 Design and Construct Service Road Enhancement to North Road Corridor Qatar 30/10/ ,920,159 $ 977,920,159 $ 95.7% 41,629,489 East Industrial Road Qatar 05/12/ ,439,560 $ 200,439,560 $ 4.3% 191,739,613 Design & Build of Celebration Pavilion Extension of the Building at Al Bidda Park Qatar 31/10/2018 8,750,000 $ 8,750,000 $ 0.0% 8,750,000 QATAR TOTAL 1,714,966,148 Installation Services for Dehydrators & Desalters Iraq 16/02/ ,000,000 $ 99,000,000 $ 0.2% 98,844,874 IRAQ TOTAL 98,844,874 Construction Compound Main Works Kazakhstan 31/08/ ,012,126 $ 43,006,063 $ 39.6% 25,974,561 FGP Temporary Construction Facilities Kazakhstan 30/11/ ,140,746 $ 50,570,373 $ 32.4% 34,175,537 FGP Wellhead Pressure Management Project Kazakhstan 26/07/ ,745,593 $ 226,372,797 $ 2.5% 220,647,634 KAZAKHSTAN TOTAL 280,797,732 TOTAL 3,082,255,404 * Not included in the consolidated revenues. ** Included in the financial statements using equity method. - Expected end date refers to the mechanical completion date. 11

12 Contracting Group Growth Backlog (US$ million) 4,000 3,500 3,000 2,500 2,000 1,500 1, Abroad Turkey , ,841 2,524 2, ,619 1,449 1,589 1, , ,350 1,668 1, ,257 1, The backlog, which was USD 3.4 billion as of 2017-end, decreased to USD 3.1 billion as of end of March 2018, due to rising completion rates of the projects. As of end of March 2018, 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 Middle East 67% Caspian Region 15% Industrial Facilities 20% Transportation 54% Pipeline 16% Turkey 18% Buildings 10% Region US$ million Middle East Turkey 541 Caspian Region 463 Total Project Type US$ million Transportation Pipeline 484 Industrial Facilities 607 Buildings 314 Total

14 Contracting Group Revenues & EBITDA Margin Revenues (TRY million) ve EBITDA Margin (%) 8,000 7,000 Revenue 12.7% Margin 12.0% 13.2% 11.3% 7,511 15% 6,000 5,000 4,000 3,000 2,000 1, , % 11.2% 9.3% 9.3% 7.6% 4, % 5.1% 7.3% 2,768 2,824 2,395 2,327 2,153 1, ,073 1,031 1,319 1,341 1, % -4.3% E 10% 8.6% 5% 0% -5% While full-year 2018 EBITDA margin guidance is at 8.6%, realized margin in 2018/1Q is 10.9%. 14

15 Content 2018 January March 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 first quarter of On a quarterly basis as compared to 2017/Q1, Ammonia prices decreased by 6% on average while decreasing by 27% during the 2018/Q1 Urea prices moved in a narrow range and decreased by 4% Sale prices of phosphatic fertilizers increased by 13% and ammonium nitrate prices decreased by 7%. Developments in Turkey Distributers avoided from CAN fertilizers and preferred to sell urea as a result of application issues in the new fertilizer tracking system. Demand for phosphatic fertilizers increased due to the early plantation of cotton, sunflower, etc. arising from increased government subsidies on legume production. 16

17 1.000 Ton Toros Agri Domestic Sales 2018/Q1 Domestic Sales Domestic Sales Breakdown By Product (1,000 Tons) /1Q 2018/1Q /1Q 2018/1Q Dealer Sales Wholesale CAN* AS UREA DAP COMP Domestic sales volume in Q1 increased by 4% compared to 2017/Q1. Export sales volume declined by 36% compared to 2017/Q1 and realized at 33 thousand tons in 2018/Q1 which brought total sales volume to ~620 thousand tons. 2017/Q1 2018/Q1 Difference AVERAGE DOMESTIC PRICE (USD/TON) %5 * CAN26 and CAN21 sales included 17

18 Toros Agri 2018/Q1 Production and Procurement Production (1,000 tons) Procurement (1,000 tons) 2017/1Q 2018/1Q 2017/1Q 2018/1Q CAN* AN** DAP Comp Total AS Urea Total Procurement CUR: 88% (2017/Q1: 88%) Distributors preferred to sell AS and urea as a result of application issues of new fertilizer tracking system and avoided from CAN sales which led to an increase in total procurement figures. * CAN26 and CAN21 production included 18

19 Agri-Industry Group Terminal Services Handled Quantity (1,000 Tons) Leased capacity (1,000 m 3 ) 1, Dry/Liquid Bulk - General Cargo* 2017/3M 2018/3M Petroleum Products 2017/3M 2018/3M As a result of soft winter conditions and falling coal imports in the 2018/3M, handling quantity in dry/liquid bulk-general cargo segment decreased by 23% compared to 2017/3M. Occupancy rate of petroleum products tanks was 72.7% (2017/3M: 82.7%). * Handling quantity for petroleum products is not included. 19

20 Million TRY Agri-Industry Group Million TRY Revenue, EBITDA and Net Profit Million TRY Revenue EBITDA Net Profit /1Q 2018/1Q Agri Terminal 2017/1Q 2018/1Q Agri Terminal 2017/1Q 2018/1Q Agri Terminal Agri segment s revenue increased due to higher sales volume of fertilizer and higher average prices on TL basis. Increased raw material costs and competition on nitrate fertilizer sales had negative effect on the profitability of the first quarter. Terminal segment s revenue and profitability deteriorated due to lower handling volume in dry/liquid bulk-general cargo product group as well as lower occupancy rate in petroleum products. Average domestic sales price: 2017/Q1: 1,003 TRY/ton 2018/Q1: 1,096 TRY/ton 20

21 Content 2018 January March Financial Results Detailed Information by Operating Segments Contracting Group Agri Industry Group Real Estate Development Group 21

22 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 22

23 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 May Izmir Mixed Use Mixed Use Izmir Mar.16 * * Topkapı Project Residential Istanbul Apr.16 March Topkapı Project II Residential Istanbul Sept ** 254 *** BREAKDOWN BY FUNCTION (m²) Project Residential Sellable/ Leasable Area Office Sellable/ Leasable Area Retail Sellable/ Leasable Area HEP İstanbul Project 180,155-2,595 Izmir Project* Topkapı Project 45,062-2,118 Topkapı Project II * Tekfen has 50% share in the project. Revision works of the concept project were started according to the current market conditions. The construction works are planned to be started in Project schedule will be set according to construction start date. ** 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. 2

24 Real Estate Development Ongoing Projects Esenyurt Housing Project Overview: Being 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 The Project has been launched on October 30th, ,051 residential units having a total area of 118,868 m² have been sold as of March 31st Total sales amount is TRY333 million and 1,040 residences have been delivered to the new owners. Project Size: TRY 687 million Tekfen Share: 100% Project Summary : Total Sellable Space: Housing: 180,155 m², Retail: 2,595 m² Construction Period Start: Q2/2015 Completed as of Q2/2017 The project will maintain 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. 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 3

25 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 : (*) Tekfen Share : 50 % Project Summary: Total Sellable/Leasable area (GLA) (*) Estimated const. period: Q1/2016 Completed Date (*) 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 The EIA report and the urban transformation approval have been granted, demolishing work of the buildings on the site is completed accordingly. The construction works are targetted to be started in 2018, thus the concept project revision works were initiated according to the changing market conditions. Construction permit works are ongoing, and EPİG Mimarlık has been assigned for this work. The project schedule will be set according to construction start date. 4

26 Real Estate Development Ongoing Projects Topkapı Housing Project I Zeytinburnu Municipality requested revisions for the project with the new board decision of the municipality, after the project s construction permit were obtained. For this reason, negotiations are still being held with the municipality. Revised construction permit is planned to be approved in May by municipality. During this period, the sales office construction has been started and it is targeted to be completed in June 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 October 2017 and the project is planned to be completed within 24 months. Project Size: TRY 460 million Tekfen Share: 100% Project Summary : Total Sellable Space: Housing: 45,062 m², Retail: 2,118 m² Construction Period Start: Q2/2018 Complete: Q3/2020 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. 5

27 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 the one plot were required to be renewed. The renewal of the plans were started after assignment of the consultant in coordination with the municipality. 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 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 254million 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 according to zoning process. 6

28 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, about 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. 28

29 Contact Information For General Questions and Requests for Reports: Çağlar Gülveren, CFA Investor Relations and Corporate Governance Director, Tekfen Group of Companies Tel: Can Çimenser, Investor Relations Assistant Manager Tel: