01.01.2016 - 30.06.2016 financial & operational · pdf fileshah deniz stage 2 onshore...

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01.01.2016 - 30.06.2016

Financial & Operational

Highlights

2

2016 January – June Financial Results

2016 Year-end Projections (Revised)

Detailed Information by Operating Segments

Contracting Group

Agri – Industry Group

Real Estate Development Group

Content

Basic Balance Sheet Items (Million TRY) 31 Dec 15 30 June 16 Change (%)

Total Assets 5.626 5.649 -

Shareholders' Equity 2.085 2.228 7▲

Basic Income Statement Items (Million TRY)

01 Jan -

30 June 15

01 Jan-

30 June 16 Change (%)

Revenues 2.040 2.438 20▲

Gross Profit 212 373 76▲

EBITDA* 157 299 91▲

Operating Profit 57 250 335▲

Income Before Tax 145 273 88▲

Net Profit for the Period 115 224 95▲

3

Main Financial Indicators

* Earnings before interest, tax, depreciation and amortization

Sales Revenue

4

Consolidated (Million TRY) By Segment (Million TRY)

By Segment (%)

2015/6 2016/6

2.040

2.438

Contracting Agri Industry Real Estate Other

1.017 978

14 31

1.318

1.091

14 14

2015/6 2016/6

49,9% 47,9%

0,7% 1,5%

2015/6

54,1%

44,8%

0,6% 0,6%

2016/6

EBITDA

5

Consolidated EBITDA (Million TRY) EBITDA by Segment (Million TRY)

2015/6 2016/6

157

299


79 87

-3 -6

132

180

-6 -6

2015/6 2016/6

EBITDA Margin

6

Consolidated (%) By Segment (%)

2015/6 2016/6

7,7

12,3


7,8 8,9

-21,1 -20,6

10,0 16,5

-44,3 -41,5

2015/6 2016/6

Net Profit

7

Consolidated (Million TRY) By Segment (Million TRY)

2015/6 2016/6

115

224


17

64

-1

36 50

164

-6

16

2015/6 2016/6

Net Profit Margin

8

Consolidated (%) By Segment (%)

2015/6 2016/6

5,6

9,2


1,7 6,5

-7,8

115,5

3,8 15,1

-38,6

109,6 2015/6 2016/6

Net Cash Position*

9

Consolidated (Million TRY) By Segments (Million TRY)

* Net of bank loans, leasing payables, cash and cash equivalents.

2015/12 2016/6

-183

157


-680

-323

-39

860

-491

-37 -88

773 2015/12 2016/6

10




Contracting Group



Content

Total Revenues

11

Million TRY

P: Full-year Projection

4.475

3.888

4.650

2014 2015 2016/P

Revenues (Million TRY)

12


Contracting Agri Industry

Real Estate Other

2014 2015 2016/P

2.768

2.153

2.648

2014 2015 2016/P

1.626 1.659 1.931

2014 2015 2016/P

26 28 40

2014 2015 2016/P

55 48 31

EBITDA

13

Million TRY


188

294

507

2014 2015 2016/P

EBITDA (Million TRY)

14


Real Estate Other

* A total amount of TRY139,8 million asset write-off in Libya is included.


2014* 2015 2016/P

-38

164

228

2014 2015 2016/P

248

145

304

2014 2015 2016/P

-7 -6 -13

2014 2015 2016/P

-15 -9

-12

EBITDA Margin (%)

15



4,2

7,6

10,9

2014* 2015 2016/P

EBITDA Margin (%)

16


Real Estate Other


** Projected

2014* 2015 2016/P

-1,4

7,6 8,6

2014 2015 2016/P

15,3

8,7

15,7

2014 2015 2016/P

-28,0

-21,0

-32,5

2014 2015 2016/P

-27,0

-18,0

-38,7

Net Profit

17

Million TRY



58

193

368

2014* 2015 2016/P

Net Profit (Million TRY)

18


Real Estate Other



2014* 2015 2016/P

-197

42

108

2014 2015 2016/P

218

75

250

2014 2015 2016/P

-4 -2 -12

2014 2015 2016/P

41

78

22

19



Net Profit Margin (%)

1,3

5,0

7,9

2014* 2015 2016/P

Net Profit Margin (%)

20


Real Estate Other



2014 2015 2016/P

13,4

4,5

12,9

2014 2015 2016/P

74,3

161,0

71,0

2014* 2015 2016/P

-7,1

2,0 4,1

2014 2015 2016/P

-15,9

-7,5

-30,0

21




Contracting Group



Content

Contracting Group Backlog as of

30 June 2016

‘Expected end date’ refers to the mechanical completion date.

* Not included in the consolidated revenues.

** Consolidated using equity method.

Project Location

Expected End

Dates

Current

Contract Price Tekfen Portion

Revenue Based

Completion Rate

Remaining

Amount (US$)

Çiftehan-Pozantı Motorway Turkey 21.03.2015 329.453.570 $ 232.758.947 $ 99,9% 205.083

Prov. of Pipeline and Facilities Repair Services for BTC Turkey Turkey 31.12.2016 136.200.000 $ 136.200.000 $ 52,8% 64.255.615

Toros Tarım Samsun Plant Investment Project* Turkey 31.12.2015 163.028.593 $ 163.028.593 $ 98,1% 3.142.286

TANAP Project Lot3 Turkey 25.12.2017 572.774.853 $ 572.774.853 $ 31,1% 394.837.443

TANAP Compressor and Metering Stations Turkey 31.12.2018 457.000.000 $ 457.000.000 $ 0,7% 453.915.300

Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 15.05.2019 299.499.130 $ 149.749.565 $ 0,0% 149.749.565

TURKEY TOTAL 1.066.105.292

New Management Office Project of SOCAR Azerbaijan 31.08.2016 400.130.138 $ 400.130.138 $ 99,3% 2.933.753

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 262.365.978 $ 262.365.978 $ 80,4% 51.359.588

Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal Azerbaijan 15.10.2017 327.441.969 $ 327.441.969 $ 64,0% 117.886.828

AZFEN Projects** Azerbaijan 1.800.163.255 $ 720.065.302 $ 67,9% 231.376.361

AZERBAIJAN TOTAL 446.005.402

Propylene Oxide Process Unit S. Arabia 15.07.2016 213.745.987 $ 213.745.987 $ 93,1% 14.654.857

SAUDI ARABIA TOTAL 14.654.857

OCP Slurry Pipeline Project Khouribga - Jorf Lasfar Morocco 31.07.2014 456.378.417 $ 456.378.417 $ 100,0% 150.000

MOROCCO TOTAL 150.000

Additional Work for North Road Project Qatar 30.06.2014 90.591.985 $ 90.591.985 $ 99,7% 294.743

Design and Construct Service Road Enhancement to North Road Corridor Qatar 30.04.2017 904.946.459 $ 904.946.459 $ 67,7% 292.013.734

QATAR TOTAL 292.308.477

TOTAL 1.819.224.028

22

Contracting Group Growth

23

The backlog, which was at USD 1.7 billion as of 2015-end, increased to USD 1.8 billion as of

end of June 2016 with the effect of the completed works in H1 and the additional projects

undertaken during the period.

As of end of June 2016, the backlog outside Turkey adds up to 41% 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

1.066 175 201 242

167 264

1.535 1.350

1.668 1.257 1.225

1.794

1.449 1.589

2.524 1.619

1.139

753

Abroad Turkey

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

1.819

Contracting Group Ongoing Projects

Backlog Breakdown by Regions Backlog by Project Types

24

Region Million USD

Turkey 1.066

Caspian Region 446

Middle East 307

North Africa 0

Total 1.819

Middle

East

17%

North

Africa

0%

Caspian

25%

Turkey

59%

Industrial

Facilities

23%

Pipeline

50%

Buildings

2% Transpota

tion

24%

Project Type Million USD

Pipeline 913

Transportation 442

Industrial Facilities 418

Buildings 45

Total 1.819

Contracting Group

25

Revenues &

EBITDA Margin

The EBITDA margin which was at 7.6% in 2015, is at 10% in H1/2016. 2016 full-year EBITDA

margin expectation is 8.6%.

Revenues (Million US$) 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 2016B

Ciro Marj

26




Contracting Group



Content

FERTILIZERS

Global Developments

Second quarter average price of urea and ammonium nitrate decreased by 28%, year-on-year.

Ammonia average price decreased by 31% year-on-year.

Phosphatic fertilizer’s quarterly average price decreased by 25% year-on-year.

Developments in Turkey

Sales and distribution of ammonium nitrate fertilizers was banned as of June 8th. The ban is expected to

continue until the year-end.

In the short term, ammonium nitrate fertilizers are expected to be substituted by urea and ammonium

sulphate.

27

Agri-Industry Group Developments

Domestic Fertilizer Sales

and Marketshare Toros Agri 2nd Quarter

28

Sales volume increased by 9% in the first half; whereas, in the second quarter, it decreased by 7%

year-on-year.

1st Half

369 334

6 13

0

100

200

300

400

500

600

700

2015/Q2 2016/Q2

1,0

00 T

ons

Dealer Sales Wholesale

375 347

961 1.044

48 60

0

200

400

600

800

1.000

1.200

1.400

2015/H1 2016/H1

1,0

00 T

ons

Dealer Sales Wholesale

1.104 1.009

Domestic Fertilizer Sales

by Products Toros Agri

29

1st Half (1,000 Tons)

AN 26 AN 33 AS UREA DAP COMP

202

282

50

104

55

316

212

297

44

184

48

319

2015/H1 2016/H1

2nd Quarter (1,000 Tons)


43

97

26

53

24

132

30

88

24

85

16

104

2015/Q2 2016/Q2

AN26 and AN33 sales volume decreased compared to 2015/Q2 due to the ban.

Dealers postponed their phosphatic fertilizer procurement with the expectation of further price decrease due to

downward pricing trend in the market. As a result, DAP and compound fertilizers’ sales volume is lower in

2016/Q2 compared to 2015/Q2.

Toros Agri

30

2nd Quarter (USD/ton)

Domestic Sales Prices


235 272

201

349

519

372

208 246

183

285

429

345

2015/Q2 Avg. 2016/Q2 Avg.

1st Half (USD/ton)


267

303

204

362

521

384

225 260

192

301

459

355

2015/H1 Avg. 2016/H1 Avg.

2015/Q2 2016/Q2 Difference 2015/H1 2016/H1 Difference

AVERAGE PRICE (USD$/TON) 325 287 -12% 334 294 -12%

Fertilizer Production Toros Agri

31

2nd Quarter (1,000 tons) 1st Half (1,000 tons)

29

113

41

160

343

62 90

33

168

353

AN 26 AN 33 DAP COMP Total

Production

2015/Q2 2016/Q2

119 180

57

338

694

131 182

56

361

730

AN 26 AN 33 DAP COMP Total

Production

2015/H1 2016/H1

Toros Agri Capacity Utilization

32

PRODUCT PLANT CAPACITY

(1,000 tons/yr) CAPACITY UTILIZATION RATE(%)

2015/Q2 2016/Q2 2015/H1 2016/H1

AN26 MERSİN 660 95 98 96 100

NPK CEYHAN 660 87 88 88 85

NPK/DAP SAMSUN* 625 47 40 44 50

TOTAL** 1.945 79 76 79 79

* Samsun Plant’s NPK/DAP production capacity in 2015 was 527.000 tonnes/year.

** Weighted average CUR

Fertilizer Procurement Toros Agri

33

2nd Quarter (1,000 tons) 1st Half (1,000 tons)

17

48

65

0

64 64

AS UREA Total Imports

2015/Q2 2016/Q2

6

33

100

139

0

42

123

165

AN33 AS UREA Total Imports

2015/H1 2016/H1

Agri-Industry Group

34

Handling quantity in dry/liquid bulk-general cargo segment increased by 22% compared to 2015/H1. Main reason for

the increase is higher coal handling volume because coal traders increased their inventory in the first half

Occupancy rate in petroleum products’ tanks was 76%. (2015/H1: 51%)

Handled Quantity (1,000 Tons)

Dry/Liquid Bulk-General Cargo*

2.478

3.019

2015/H1 2016/H1

Leased capacity (1,000 m3)

Petroleum products

695

1.026

2015/H1 2016/H1

* Handling quantity for petroleum products is not included.

Terminal Services

Agri-Industry Group

35

Revenue EBITDA Net Profit

Revenue, EBITDA and

Net Profit

2015/Q2 2016/Q2

366 328

26 32

Mil

lion

TR

Y

Agri Terminal

2015/Q2 2016/Q2

13

39 14

20

Mil

lion

TR

Y

Agri Terminal

59

2015/Q2 2016/Q22

5

38

10

15

Mil

lion

TR

Y

Agri Terminal

392 360

27

15

53

Agri segment’s revenue decreased due to lower fertilizer sales volume and lower average TRY/ton fertilizer

price.

Profitability improved in Q2 because the balance between fertilizer sales prices and input prices was more

favorable compared to 2015/Q2.

Terminal segment’s revenue and profitability improved due to higher handling volume in dry/liquid bulk-

general cargo product group and higher occupancy rate in petroleum products.

* Average price: 2015/Q2: 867 TRY/ton – 2016/Q2: 828 TRY/ton

Agri-Industry Group

36

Revenue EBITDA Net Profit

2015/H1 2016/H1

925 1023

53 68

Mil

lion

TR

Y

Agri Terminal

2015/H1 2016/H1

58

137 29

43

Mil

lion

TR

Y

Agri Terminal

2015/H1 2016/H1

42

130 22

34

Mil

lion

TR

Y

Agri Terminal

978 1.091

87

180

64

164

Revenue, EBITDA and

Net Profit

Agri segment’s revenue increased due to higher fertilizer sales volume and higher average TRY/ton fertilizer

price.

Profitability improved in first half because the balance between fertilizer sales prices and input prices was

more favorable compared to 2015/H1.

Terminal segment’s revenue and profitability improved due to higher handling volume in dry/liquid bulk-

general cargo product group and higher occupancy rate in petroleum products.

* Average price: 2015/H1: 848 TRY/ton – 2016/H1: 860 TRY/ton

Agri Industry Group

37

Revenue EBITDA Net Income

Revenue, EBITDA and Net Profit

Revised Projections

2015 2016P 2016P-new

1.536

2.000 1.796

123

134

135

Mil

lio

n T

RY

Agri Terminal

1.659

2.134 1.931

2015 2016P 2016P-new

73

287 221 72

78

83

Mil

lio

n T

RY

Agri Terminal

145

364

304

2015 2016P 2016P-new21

253 188

54

57

62

Mil

lio

n T

RY

Agri Terminal

75

250

310

2016 profit expectation is revised downwards with the expectation that the balance between fertilizer sales

prices and input prices will deteriorate in the second half of the year and the sales ban on nitrates will continue

until the end of the year.

38




Contracting Group



Content

39


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

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 1,418*

Esenyurt HEP Istanbul Project Residential Istanbul Sep.14 Apr.17 568

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

40

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 1,418 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 have started. Design and engineering works are

ongoing.

41

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

Project Size: TRY 568 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. 935 residential units having a total area of 102,899 m² have

been sold as of June 30th 2016. Total sales amount is TRY281 million.

42

Disclaimer

43

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.

Contact Information

44

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

Real-Estate Development Group:

Ayşe Turalı, Assistant General Manager

e-mail: [email protected]

Tel: +90 212 359 3703

mailto:[email protected]






01.01.2016 - 30.06.2016 financial & operational · pdf fileshah deniz stage 2 onshore...

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