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)


18

60

-1 -4

71

121

-2 -2

2015/3 2016/3

2015/3 2016/3

74

187

EBITDA Margin

6

Consolidated (%) By Segment (%)


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)


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 (%)


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.


-680

-323

-39

860

-543

-112 -38

773 2015/12 2016/3

2015/12 2016/3

1

78

10



Contracting 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



Contracting 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



Contracting Group



Content

23


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


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


Tel: +90 212 359 3583

Agri-Industry Group:

Canan Şenkut, Chief - Investor Relations


Tel: +90 212 357 0193

Real-Estate Development Group:

Ayşe Turalı, Assistant General Manager


Tel: +90 212 359 3703

mailto:[email protected]










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