01.01.2016 - 31.03.2016 financial & operational highlights · 01.01.2016 - 31.03.2016 financial...
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01.01.2016 - 31.03.2016
Financial & Operational
Highlights
2
2016 January – March Financial Results
Detailed Information by Operating Segments
Contracting Group
Agri – Industry Group
Real Estate Development Group
Content
Basic Balance Sheet Items (Million TRY) 31 Dec 15 31 Mar 16 Change (%)
Total Assets 5.626 5.662 1▲
Shareholders' Equity 2.085 2.167 4▲
Basic Income Statement Items (Million TRY)
01 Jan -
31 Mar 15
01 Jan-
31 Mar 16 Change (%)
Revenues 1.091 1.373 26▲
Gross Profit 115 223 94▲
EBITDA* 74 187 153▲
Operational Profit 27 166 515▲
Income Before Tax 88 168 91▲
Net Profit 85 150 76▲
3
Main Financial Indicators
* Earnings before interest, tax, depreciation and amortization
Sales Revenue
4
Consolidated (Million TRY) By Segment (Million TRY)
By Segment (%)
Contracting Agri Industry Real Estate Other
485
586
7 13
628
731
7 7
2015/3 2016/3
44% 54%
1% 1%
2015/3
2015/3 2016/3
1.091
1.373
46% 53%
1% 1%
2016/3
EBITDA
5
Consolidated EBITDA (Million TRY) EBITDA by Segment (Million TRY)
Contracting Agri Industry Real Estate Other
18
60
-1 -4
71
121
-2 -2
2015/3 2016/3
2015/3 2016/3
74
187
EBITDA Margin
6
Consolidated (%) By Segment (%)
Contracting Agri Industry Real Estate Other
3,8 10,3
-14,7
-28,6
11,3 16,5
-34,8 -29,3
2015/3 2016/3
2015/3 2016/3
6,7
13,6
Net Profit
7
Consolidated (Million TRY) By Segment (Million TRY)
Contracting Agri Industry Real Estate Other
14
49
0
23 34
112
-2
6
2015/3 2016/3
2015/3 2016/3
85
150
Net Profit Margin
8
Consolidated (%) By Segment (%)
Contracting Agri Industry Real Estate Other
2,9 8,3
-5,1
167,1
5,4 15,3
-26,5
79,8
2015/3 2016/3
2015/3 2016/3
7,8
10,9
Net Cash Position*
9
Consolidated (Million TRY) By Segments (Million TRY)
* Net of bank loans, leasing payables, cash and cash equivalents.
Contracting Agri Industry Real Estate Other
-680
-323
-39
860
-543
-112 -38
773 2015/12 2016/3
2015/12 2016/3
1
78
10
2016 January – March Financial Results
Detailed Information by Operating Segments
Contracting Group
Agri – Industry Group
Real Estate Development Group
Content
Contracting Group Backlog as of
31 March 2016
11
* Not included in the consolidated revenues.
** Included in the financial statements using equity method.
- Expected end date” refers to the mechanical completion date.
Project Location
Expected End
Dates
Revenue
Based
Completion
Rate
Remaining
Amount (US$)
Çiftehan-Pozantı Motorway Turkey 21.03.2015 329.421.814 $ 232.736.511 $ 99,9% 182.647
Prov. of Pipeline and Facilities Repair Services for BTC Turkey Turkey 31.12.2016 136.200.000 $ 136.200.000 $ 43,4% 77.035.350
Toros Tarım Samsun Plant Investment Project* Turkey 31.12.2015 162.721.827 $ 162.721.827 $ 98,3% 2.835.521
Supply and Fabrication of Pancakes of Top Sides Modules Turkey 31.01.2016 51.915.998 $ 51.915.998 $ 98,4% 805.583
TANAP Project Lot3 Turkey 25.12.2017 572.774.853 $ 572.774.853 $ 22,8% 441.976.361
TANAP Compressor and Metering Stations Turkey 31.12.2018 457.000.000 $ 457.000.000 $ 0,0% 457.000.000
TURKEY TOTAL 979.835.462
New Management Office Project of SOCAR Azerbaijan 30.06.2016 396.427.171 $ 396.427.171 $ 99,6% 1.533.789
Baku Olympic Stadium Additional Completion Works Azerbaijan 30.05.2015 209.755.803 $ 209.755.803 $ 79,8% 42.448.872
Shah Deniz Stage 2 Fabrication of Offsite Facilities Azerbaijan 03.06.2017 262.365.979 $ 262.365.979 $ 67,1% 86.231.621
Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal Azerbaijan 15.10.2017 327.441.969 $ 327.441.969 $ 52,0% 157.039.128
AZFEN Projects** Azerbaijan 1.778.801.279 $ 711.520.511 $ 59,8% 286.157.307
AZERBAIJAN TOTAL 573.410.717
Propylene Oxide Process Unit S. Arabia 30.06.2016 180.042.909 $ 180.042.909 $ 99,9% 198.277
SAUDI ARABIA TOTAL 198.277
OCP Slurry Pipeline Project Khouribga - Jorf Lasfar Morocco 31.07.2014 456.378.417 $ 456.378.417 $ 99,8% 891.142
MOROCCO TOTAL 891.142
Qatar Primary Routes North Roads Contracts 2&3 Qatar 30.09.2013 799.824.946 $ 799.824.946 $ 99,5% 4.388.021
Additional Work for North Road Project Qatar 30.06.2014 90.602.692 $ 90.602.692 $ 98,7% 1.138.315
Design and Construct Service Road Enhancement to North Road Corridor Qatar 31.05.2017 904.273.242 $ 904.273.242 $ 61,7% 346.507.672
QATAR TOTAL 352.034.008
TOTAL 1.906.369.606
Current Contract
Price Tekfen Portion
Contracting Group Growth
12
The backlog, which was at USD 1.7 billion as of 2015-end, increased to USD 1.9 billion as of
end of March 2016, netting the 457-million US$ project undertaken in Turkey and the
completed works in Q1.
As of end of March 2016, the backlog outside Turkey adds up to 49% of total backlog.
Backlog (US$ million)
0
500
1.000
1.500
2.000
2.500
3.000
569 484 484 368 237 159 111 72 75 34 36
555 561 474 754 572
980 175 201 242
167 264
1.535 1.350
1.668 1.257 1.225
1.794
1.449 1.589
2.524 1.619
1.139
927
Yurtdışı Yurtiçi
744 685 726
535 501
1.694 1.461
1.740
1.333 1.259
1.830 2.005 2.150
2.998
2.373
1.711
1.906
Contracting Group Ongoing Projects
Backlog Breakdown by Regions Backlog by Project Types
13
Region Million USD
Turkey 980
Caspian Region 573
Middle East 352
North Africa 1
Total 1.906
Project Type Million USD
Industrial Facilities 989
Pipeline 520
Motorway 352
Buildings 44
Fabrication Works 1
Total 1.906
Middle
East
18%
North
Africa
0%
Caspian
30%
Turkey
51%
Industrial
Facilities
52%
Pipeline
27%
Buildings
2%
Motorway
18% Fabrication
Works 0%
Contracting Group
14
Revenues &
EBITDA Margin
The EBITDA margin which was at 7.6 % level by the end of 2015, is at 11.3% as of end of
March 2016. 2016 full-year EBITDA margin expectation is 8.6%
Revenues (TRY million) ve EBITDA Margin (%)
545 534
1.073 1.031 1.319
1.341 1.111
1.864
2.395 2.327
2.768
2.153
2.648
5,1%
12,7%
12,0%
7,3%
8,5% 11,2%
13,2%
9,3%
5,9%
-4,3%
-1,4%
7,6% 8,6%
-5%
0%
5%
10%
15%
-1.000
-500
0
500
1.000
1.500
2.000
2.500
3.000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E
Ciro Marj
15
2016 January – March Financial Results
Detailed Information by Operating Segments
Contracting Group
Agri – Industry Group
Real Estate Development Group
Content
FERTILIZERS
Global Developments
In 2016/Q1, average quarterly price of nitrogenous (ammonium nitrate and urea) fertilizers decreased by
32% year-on-year. Similarly, quarterly average ammonia price also decreased by 34% compared to
2015/Q1.
Average quarterly price of phosphate based fertilizers’ price decreased by 20% year-on-year.
Developments in Turkey
VAT for fertilizers decreased to 1% in January, and then to 0% in February.
Dealers’ procurement for the nitrogen season was delayed from 2015/Q4 to 2016/Q1 due to VAT
elimination expectation.
16
16
Agri-Industry Group Developments
2016/Q1 Domestic Sales
Toros Agri Domestic Sales
17
Domestic Sales Breakdown By Product (1,000 Tons)
AN 26 AN 33 AS UREA DAP COMP
159
185
24
51
31
184 182
210
20
99
32
214
2015/Q1 2016/Q1
Sales volume in Q1 increased by 19% compared to 2015/Q1.
592 710
42
47
2015/Q1 2016/Q1
1,0
00 T
ons
Dealer Sales Wholesale
757
634
Toros Agri
18
Domestic Sales Prices (USD/ton)
2016/Q1
Domestic Sales Prices
2015/Q1 2016/Q1 Change
AVERAGE PRICE (USD/TON) 339 297 -12%
AN 26 AN 33 AS UREA DAP COMP
275
319
207
376
524
392
227 266
202
314
474
359
2015/Q1 Ave. 2016/Q1 Ave.
2016/Q1
Production and Procurement Toros Agri
19
Production (1,000 tons) Procurement (1,000 tons)
CUR: 83% (2015/Q1: 78%)
91 67
16
178
352
68 92
23
193
376
AN 26 AN 33 DAP COMP Total
Production
2015/Q1 2016/Q1
6
16
53
75
0
42
59
101
AN33 AS UREA Total Imports
2015/Q1 2016/Q1
Agri-Industry Group Terminal Services
20
20
Handling (1,000 Tons)
Handling quantity in dry/liquid bulk-general cargo segment increased by 25% compared to 2015/Q1.
Main reason for the increase is higher cargo volume of coal, cement clinker and bagged cement.
Occupancy rate in petroleum products’ tanks was 77%. (2015/Q1: 56%)
Leased Capacity (1,000 m 3)
Petroleum Products
380
522
2015/Q1 2016/Q1
* Does not include petroleum products’ handling volume.
Dry/Liquid Bulk - General Cargo*
1.306
1.637
2015/Q1 2016/Q1
Handled Quantity and
Leased Capacity
2015/Q1 2016/Q1
37 94
12
18
Mil
lion
TR
Y
Agri Terminal
Agri-Industry Group
21
21
Agri segment’s revenue increased due to higher fertilizer sales volume and higher average TRY/ton fertilizer
price.
Profitability in agri segment improved because the balance between fertilizer sales prices and input prices was
more favorable compared to 2015/Q1.
Terminal segment’s revenue and profitability improved due to higher handling volume in dry/liquid bulk-general
cargo and higher occupancy rate in petroleum products.
Revenue EBITDA Net Income
2016/Q1 Revenue,
EBITDA, Net Income
2015/Q1 2016/Q1
45
98 15
23
Mil
lion
TR
Y
Agri Terminal
121
60 49
112
2015/Q1 2016/Q1
559 695
27
36
Mil
lion
TR
Y
Agri Terminal
586
731
* Average price: 2015/Q1: 837 TRY/ton – 2016/Q1: 875 TRY/ton
22
2016 January – March Financial Results
Detailed Information by Operating Segments
Contracting Group
Agri – Industry Group
Real Estate Development Group
Content
23
Real Estate Development Group
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
Tek
fen
Rea
l E
sta
te D
evel
op
men
t G
rou
p
Organization
24
Projects Real Estate Development Group
* Tekfen has 50% share in the project.
Project
Project
Function Location
Start Date of
Poject
End Date of
Project
Estimated Project
Size
(million TRY)
Izmir Mixed Use Mixed Use Izmir Mar.16 Dec.19 1,174*
Esenyurt HEP Istanbul Project Residential Istanbul Sep.14 Apr.17 563
BREAKDOWN BY FUNCTION (m²)
Project Residential
Sellable/
Leasable Area
Office
Sellable/
Leasable Area
Retail
Sellable/
Leasable Area
Izmir Project* 32,519 62,247 46,000
Esenyurt Project 180.155 - 2.595
Real Estate Development Group
25
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 1,174 million
Tekfen Share : 50 %
Project Summary:
Total Sellable/Leasable area (GLA) : (Tekfen share)
Shopping Mall 46,000 m²; Home Office 62,247 m² and
Residential 32,519 m²
Estimated const. period: Q1/2016 – Q4/2019
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
Excavation and shoring permit is granted and on-site
works has started. Design and and engineering works are
ongoing.
Real Estate Development
26
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
Project Size: TRY563 million
Tekfen Share: 100%
Project Summary :
Total Sellable Space:
Housing: 180,155 m², Retail: 2,595 m²
Construction Period Start: Q2/2015 Complete: 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
Project has been launched on October 30th, 2014. 887 residential units having a total area of 96,775 m² have
been sold as of March 31st 2016. Total sales is TRY260.5 million.
Disclaimer
27
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.
Contact Information
28
For General Questions and Requests for Reports:
Çağlar Gülveren, CFA Investor Relations and Corporate Governance Coordinator
e-mail: [email protected]
Tel: +90 212 359 3420
Contracting Group:
Fatih Bahçeci, Tekfen Construction Vice President - Projects Planning and Control
e-mail: [email protected]
Tel: +90 212 359 3583
Agri-Industry Group:
Canan Şenkut, Chief - Investor Relations
e-mail: [email protected]
Tel: +90 212 357 0193
Real-Estate Development Group:
Ayşe Turalı, Assistant General Manager
e-mail: [email protected]
Tel: +90 212 359 3703