Tekfen Holding Anonim Sirketi · BIST:TKFEN
Tekfen Holding Anonim Sirketi — Tekfen Holding — Investor Presentation (March 2015)
68 slides from Tekfen Holding Anonim Sirketi's investor presentation, March 2015
Slide 1: Tekfen Holding Investor Presentation March 2015
Tekfen Holding Investor Presentation March 2015
Slide 2: Tekfen Group At a glance
Tekfen Group At a glance 1956 Feyyaz Berker, 1971 Foundation of 1981 Toros Fertilizer 2000 Tekfen Real Estate 2007 Partnership with 2012 Sale of Eurobank Nihat Gökyiğit and Tekfen Holding starts production Development Group Eurobank EFG in Tekfen Necati Akçağlılar Tekfenbank formed an engineering 19
Slide 3: Corporate Governance
Tekfen Group Corporate Governance Ownership structure Share Classes Single type of shares (one share one vote) Free Float 42% Others 4% Composition of the Board Akçağlılar 4 out of 11 members are independent. 11% Board members to be elected for max. Gökyiğit of three years 21% Berker 21% Dividends 3
Slide 4: Tekfen Group At a glance
Tekfen Group At a glance Contracting Agri Industry Real Estate Other Main Operations Main Operations Main Operations Tekfen Insurance • Construction • Fertilizer production and • Real Estate Development • Authorised agent of 18 • Engineering distribution • Construction & Marketing insurance and 3 pe
Slide 5: Strategic focus
Tekfen Group Strategic focus • Tekfen Holding is devoted to the motto “do what you know best in the best way possible” which was determined by its founding shareholders. In this framework Tekfen has focused on Contracting, Agri-industry / Terminal Services and Real-Estate Development sectors. • Cont
Slide 6: Strategic focus
Tekfen Group Strategic focus • Terminal activities are undertaken in the framework of Agri-industry segment comprising of two marine terminals strategically located in the Mediterranean and the Black Sea regions. • It is observed that in parallel to the development and enrichment of every country, d
Slide 7: Vision / Mission
Tekfen Group Vision / Mission Our Vision “To be one of the leading forces of Turkey’s growth in our areas of operations namely, Contracting, Agri-Industry and Real-Estate Development.” Our Mission “While remaining commited to our traditional values, we aim to focus on our core operations, deliver th
Slide 8: Social Responsibility
Tekfen Group Social Responsibility • Tekfen Group believes that supporting social culture and environmental activities are the natural extentions of its corporate structure. All the companies under the Tekfen Group umbrella emphasize “usefulness”, “harmony” and “protection” principles as a prerequis
Slide 9: Human resources
Tekfen Group Human resources Number of employees Tekfen Holding has a dynamic and 17.532 15.509 15.514 professional workforce of over 13.878 13.079 13.000 employees. 11.366 2009 2010 2011 2012 2013 2014 Number of employees (breakdown by segment) Contracting Agri Industry Real Estate Other Total 2009
Slide 10: Contracting
Contracting
Slide 11: Contracting Overview
Contracting Overview • Founded in 1956 as an engineering and consultancy firm. • One of the largest contracting groups in Turkey. • Main area of specialization is construction projects in the oil and gas industry. • Is among the leading international construction companies in the world and ranks at
Slide 12: Selected Clients
Contracting Selected Clients TURKISH • TCK, Turkish State Highways Authority • TPAO, Turkish Petroleum Co. • EÜAŞ, Electricity Production Co. • DSI, State Hydraulic Works • PETKİM, Petrochemical Co. • Turkish State Railways Authority • TÜPRAŞ, Turkish Petroleum Refineries Co. • Turkish Olympic Commi
Slide 13: Selected International Project Partners
Contracting Selected International Project Partners • Alstom, France • NEC, Japan • AMEC, UK • Nippon Signal, Japan • Babcock Borsig Power, Germany • Parsons Inc., USA • Chiyoda Corp., Japan • Petrofac, UAE • Fluor, USA • SAE, France • Foster Wheeler, Italy • Saipem, Snamprogetti, Italy • Hitachi Pl
Slide 14: Contracting Overview
Contracting Overview Overview • With its sister companies Tekfen Engineering, Tekfen Manufacturing, Hallesche Mitteldeutsche Bau-AG (HMB) (Germany), AZFEN (Azerbaijan) and strategic partnerships, Tekfen is positioned to extend its services to a large range of clients on three continents. • The Group
Slide 15: Manpower
Contracting Manpower Total Manpower: 14.503 TURKEY:5.372 ABROAD:9.131 Morocco 131 Qatar 1.866 Turkmenistan Azerbaijan 23 6.555 Iraq 6 Saudi Arabia 520 Libya 1 Kazakhstan 24 Uzbekistan 5 15 Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Slide 16: Manpower Structure
Contracting Manpower Structure DISIPLINE&DIVISION ENGINEERS 369 2,5% MANAGEMENT 152 1,0% NATIONALITY PROCUREMENT 32 0,2% TURKISH 6.760 46,6% ADMIN 459 3,2% AZERBEIJANI 4.844 33,4% QA&QC/HSE 264 1,8% TURKMEN 20 0,2% TECHNICIANS 106 0,7% MOROCCAN 10 0,1% FOREMEN 318 2,2% INDIAN 282 1,9% OPERATORS&DRIV
Slide 17: Areas of Expertise
Contracting Areas of Expertise BASIC DETAILED PROCUREMENT FABRICATION CONSTRUCTION START UP ENGINEERING* ENGINEERING E E+P E+P+F E+P+C PMS E : Engineering F : Fabrication P : Procurement PMS : Project Management Services C : Construction * In pipelines, tank farms / terminals, motorways, bridges, tu
Slide 18: Backlog Growth
Contracting Backlog Growth Backlog (US$ million) Abroad Turkey 2.998 2.150 2.373 2005 1.830 1.694 1.740 1.461 1.333 1.259 2.524 1.619 1.449 1.589 744 685 726 1.535 1.350 1.668 1.794 175 201 242 535 501 1.257 1.225 569 167 264 72 555 561 754 484 484 368 237 159 111 75 34 36 474 2000 2001 2002 2003 20
Slide 19: Backlog (as of 31 December 2014)
Contracting Backlog (as of 31 December 2014) Revenue Based Expected End Current Tekfen Completion Remaining Project Location Dates Contract Price Portion Rate Amount (US$) Çiftehan-Pozantı Motorway Turkey 30.06.2015 324.784.000 $ 229.459.896 $ 98,1% 4.414.187 Prov. of Pipeline and Facilities Repair
Slide 20: Ongoing projects (as of 31 December 2014)
Contracting Ongoing projects (as of 31 December 2014) Backlog Breakdown by Regions Backlog Breakdown by Project Types Middle Industrial 0 East Facilities 15% 49% Caspian Region North Buildings 52% Africa 7% 1% Fabrication Works 1% Motorways Turkey 13% 32% Pipelines 29% Region US$ (million) Project T
Slide 21: Contracting Overview
Contracting Overview • Currently, the tenders entered into typically have a contract size of over US$ 200 million, compared to the US$ 25 million threshold prior to 2005. • Tekfen bids for 30 - 35 projects per year and the average success rate for winning tenders is around 10%. • The bid price is ca
Slide 22: Engineering
Contracting Engineering Tekfen Engineering Co., Inc. • Founded in 1984. • Undertakes the engineering (E) of EPC projects and the detailed engineering in other projects of Tekfen Contracting Group. • Has experience on a wide spectrum of projects, with an emphasis on pipelines, industrial, process pla
Slide 23: Tekfen Manufacturing Co., Inc.
Contracting Tekfen Manufacturing Co., Inc. • Founded in 1970. • Specialized mainly in engineering, manufacturing and construction of high quality process and storage equipment related to petroleum, petrochemical, chemical and fertilizer industries and power plants, such as cylindrical and spherical
Slide 24: Fabrication Plants
Contracting Fabrication Plants Ceyhan Steel Structure Fabrication Plant Bayil Steel Construction Manufacturing Plant • Spread on an area of 160,000 m2, of which 30,000 m2 is • Tekfen’s manufacturing facility in Baku, Azerbaijan covered, • Spread on an area of 290,000 m2, of which 26,000 m2 is • Annu
Slide 25: Revenues and EBITDA Margin
Contracting Revenues and EBITDA Margin Revenues (MTRY) and EBITDA Margin (%) Revenue EBITDA Margin 3.000 2.768 19,0% 2.395 2.327 2.500 13,2% 2.179 14,0% 2.000 1.864 11,0% 1.500 1.319 1.339 9,3% 9,0% 1.029 1.111 8,3% 1.000 6,9% 7,2% 5,9% 4,0% 500 0 2007 2008 2009 2010 2011 2012 2013 2014 2015E -1,0%
Slide 26: Ongoing projects – Turkey
Contracting Ongoing projects – Turkey TURKEY – TRANS ANATOLIAN 56’’ NAUTRAL GAS PIPELINE (TANAP) PROJECT The project scope includes Detail Engineering, partial procurement, construction, installation, testing, pre-commissioning, providing commissioning assistance and training the client’s personnel.
Slide 27: Ongoing projects – Caspian Region
Contracting Ongoing projects – Caspian Region AZERBAIJAN – NEW MANAGEMENT OFFICE PROJECT OF SOCAR Project is for the turnkey construction of SOCAR’s (State Oil Company of Azerbaijan Republic) new headquarter complex in Baku. Project size, which was USD 235 million initially, increased to USD 306 mil
Slide 28: Ongoing projects – Caspian Region
Contracting Ongoing projects – Caspian Region AZERBAIJAN – BAKU OLYMPIC STADIUM Baku Olympic Stadium Project which is located near the Boyuk Shor Lake, Baku, Azerbaijan will have a capacity of 68.000 seats. 496.000 m2 total site area, 204.000 m2 gross floor area of the Stadium contains commercial ar
Slide 29: Contracting
Contracting Tekfen Group Contracting Agri Industry Real Estate Baku Olympic Other Stadium www.tekfen.com.tr
Slide 30: Ongoing projects – Caspian Region
Contracting Ongoing projects – Caspian Region Shah Deniz Stage 2 Tekfen Projects OFFSHORE PLATFORMS The contract signed on between ATA Consortium (AMEC – Tekfen – Azfen) of which Tekfen is a member and BP Exploration (Shah Deniz) Ltd. comprises fabrication, installation and delivery of 2 offshore pl
Slide 31: Shah Deniz Stage Project Overall Scope
Contracting Ongoing projects – Caspian Region Shah Deniz Stage 2 Project Overall Scope 31 Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Slide 32: Ongoing projects - Middle East
Contracting Ongoing projects - Middle East QATAR - PRIMARY ROUTES, NORTH ROAD PROJECT PHASE 2 & 3 and ADDITIONAL WORKS Tekfen, is awarded by Ashghal, Public Works Authoritry of Qatar; construction of a 94 km Motorway, namely Primary Routes, North Road Project Phase 2 & 3. The Main Works comprise two
Slide 33: Contracting Qatar
North Road Contracting Qatar Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Slide 34: Ongoing projects - Middle East
Contracting Ongoing projects - Middle East SAUDI ARABIA - PROPYLENE OXIDE PROCESS UNIT Tekfen was awarded the construction of LSPB contract for Propylene Oxide Plant at Sadara Petrochemical Complex. The scope of work covers all civil works, erection of prefabricated columns and vessels, installation
Slide 35: Strategic Direction
Contracting Strategic Direction Tekfen Contracting Group consistently works on the following in line with the goals of its Strategic Plan: • Existing and new projects will be undertaken within the framework of the adopted business principles and occupational health, safety and environment (HSE) poli
Slide 36: Agri Industry
Agri Industry Agri Industry Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Slide 37: Agri Industry Overview
Agri Industry Overview The pioneer in Turkey’s agricultural industry • Sign of “quality” and “trust” • In business since 1981 under TOROS brand name • Over 1,000 employees • Highest employee loyalty in the industry • Seasoned – well experienced employees 37 Tekfen Group Contracting Agri Industry Rea
Slide 38: Agri Industry Overview
Agri Industry Overview • Active in fertilizer, seed, seedling and sapling production and distribution, as well as marine terminal services and free zone operations • Consolidated turnover of TRY 1,626 million as of 2014 • Leading company in Turkish fertilizer industry with a market share of 31% as o
Slide 39: Fertilizers
Agri Industry Fertilizers • Supplying every type of fertilizer Turkish farmers need • Market leader since 1986 • Vast dealers network with over 800 dealers • Sales and Marketing Team located in 7 regions • Constant contact with dealers and farmers • Timely delivery to dealers via 8 warehouses 39 Tek
Slide 40: Regional Offices & Other Units
Agri Industry Regional Offices & Other Units TEKİRDAĞ İSTANBUL ANKARA SAMSUN REGIONAL OFFICE Head Office REGIONAL OFFICE REGIONAL OFFICE Warehouse Warehouse Warehouse ŞANLIURFA REGIONAL OFFICE İZMİR Warehouse REGIONAL OFFICE Warehouse Grain Silos Seed Processing ADANA & CEYHAN REGIONAL OFFICE ANTALY
Slide 41: Fertilizers – Product Types
Agri Industry Fertilizers – Product Types • Nitrogen fertilizers: • Compound fertilizers (NPs and NPKs): • AN26 (CAN) - Calcium Ammonium Nitrate • DAP - Di-Ammonium Phosphate • AN33 - Ammonium Nitrate • NP 20.20 • AS - Ammonium Sulphate • NP 20.20+Zn • Urea • NPK 15.15.15 • NPK 15.15.15+Zn • Phospha
Slide 42: Fertilizers – Sales
Agri Industry Fertilizers – Sales 2013 Total Sales: 1.64 million tons 2014 Total Sales: 1.71 million tons AS 4% AS 3% Other 0,3% Urea 6% Urea 7% DAP 10% DAP 10% NP/NPK NP/NPK (Compound) (Compound) 44% 42% AN33 20% AN33 21% AN26 16% AN26 17% 42 Tekfen Group Contracting Agri Industry Real Estate Other
Slide 43: Fertilizers – Leader in Turkish Fertilizer Market
Agri Industry Fertilizers – Leader in Turkish Fertilizer Market Consumption and Toros Sales Volume/Marketshare Turkey’s Total Production and Toros’ Share 35% 4.000 42% 50% 7.000 31% 30% 31% 35% 39% 3.500 39% 37% 39% 6.000 28% 30% 40% 3.000 5.000 25% 1,000 tons 1,000 tons 2.500 30% 4.000 20% 2.000 3.
Slide 44: Fertilizers – Production Facilities
Agri Industry Fertilizers – Production Facilities • Three fertilizer plants located in Mersin, Ceyhan and Samsun • Total installed capacity is 2 million tpa of which 1,85 million tpa is in operation • Leading producer with 38% share in Turkey’s total installed production capacity (SPO*) SAMSUN PLANT
Slide 45: Fertilizers – Production Capacity
Agri Industry Fertilizers – Production Capacity MERSIN PLANT CEYHAN PLANT SAMSUN PLANT AN and CAN production NPK and DAP production NPK and DAP production CAPACITY CAPACITY CAPACITY 660,000 tpa CAN 2 x 330,000 tpa NPK 300,000 tpa NPK or 227,000 tpa DAP NITRIC ACID CAPACITY 330,000 tpa NPK & 200,000
Slide 46: Turkish Fertilizer Industry
Agri Industry Turkish Fertilizer Industry Breakdown of Domestic Production Capacities* Yıldız 4% Ege Toros • The scarcity of low-cost raw materials 6% 38% and high investment costs is a barrier for a new producer to enter into the Gemlik 8% market • No restrictions on imports Bagfaş 12% • 7 fertiliz
Slide 47: Fertilizers – CAN/AN Production Diagram
Agri Industry Fertilizers – CAN/AN Production Diagram In Mersin Plant, Toros produces nitric acid for its CAN/AN unit. AMMONIA AMMONIUM NITRATE AMMONIUM NITRATE AIR CALCIUM NITRIC ACID AMMONIUM WATER NITRATE LIME STONE 47 Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Slide 48: Fertilizers – DAP/NP/NPK Production Diagram
Agri Industry Fertilizers – DAP/NP/NPK Production Diagram • In Samsun Plant, Toros both produces and imports phosphoric acid for its DAP/NPK units. • In Ceyhan Plant, phosphoric acid is imported for DAP/NPK units. AMMONIA SULPHURIC ACID PHOSPHORIC UREA/AS* ACID DAP/NP/NPK PHOSPHATE ROCK POTASH** *Ei
Slide 49: Fertilizers – Production and Imports
Agri Industry Fertilizers – Production and Imports Production - Breakdown by Products 52% 48% 46% 47% 47% Compound (NP/NPK) AN26 (CAN) 23% 25% 23% 21%21% 16% 18% 19% 18% 20% 13% AN33 11% 11% 11% 11% DAP 2010; 1.45 mn 2011; 1.39 mn 2012; 1.42 mn 2013; 1.41 mn 2014; 1.49 mn tons tons tons tons tons Im
Slide 50: Marine Terminal Services
Agri Industry Marine Terminal Services TOROS has two marine terminals offering loading/unloading and storage services to third parties Toros Ceyhan Terminal • 1 jetty with 5 berths loading 1,300 tons and discharging 1,000 tons of bulk liquids per day • 1 jetty with 3 berths handling 45,000 tons of d
Slide 51: Complementary Products and Services
Agri Industry Complementary Products and Services Specialty Fertilizers: • Suppliers of specialty fertilizers are globally known leading producers; • Haifa Chemicals • Tessenderlo Chemie • Prayon • Rosier of the Total Group • Leading brand in specialty fertilizers in Turkey since 2000 Field Crop See
Slide 52: Complementary Products and Services
Agri Industry Complementary Products and Services Micropropagation: • Targets to meet the sector's demand for high quality, high yield and disease-free homogenous seed, saplings and young plants • First local successful producer of potato seeds on commercial scale by using micropropagation technique
Slide 53: Environmentally Conscious Production
Agri Industry Environmentally Conscious Production MERSIN PLANT CEYHAN PLANT SAMSUN PLANT Catalytic reduction system ISO 14001:2004 Environment Emission Certificate to keep NOX emission in Management exhaust gases released to ISO 9001:2000 Quality atmosphere from nitric acid Management unit
Slide 54: Agri Industry Social Responsibility
Agri Industry Social Responsibility Supporting farmers; Raising awareness; • Educational seminars and training • Supporting UNFPA’s “Improving health conditions of programs to improve agricultural seasonal workers in agriculture” program in Turkey productivity and product quality • “Wheat” documenta
Slide 55: Real Estate
Real Estate
Slide 56: Business Structure
Real Estate Development Business Structure Tekfen Real Estate Development Group Tekfen Real Estate Development Investment and Trade Co., Inc Business Line: Investment, development, project management, asset management Tekfen Tourism and Facility Management Co., Inc Business Line: Facility Management
Slide 57: Real Estate Development Projects
Real Estate Development Projects Estimated Revenue* Estimated Cost** Project Start Date of End Date of Project (million $) (million $) Function Project Project Total/Tekfen Share Total/Tekfen Share Izmir Project Mixed Use Jan.13 Dec.17 508/254 230/115 Esenyurt Project Residential May.13 Dec.16 231 I
Slide 58: Izmir Mixed Use Ongoing Project
Real Estate Development Ongoing Projects Izmir Mixed Use Transaction Overview: • 50%-50% partnership with Renaissance Shopping Malls • The largest mixed use project in Izmir Total Project Size – (Revenues, $ millions): 508 Tekfen Share : 50 % Project Summary: • Total Sellable/Leasable area : Shoppin
Slide 59: Esenyurt Housing Project
Real Estate Development Ongoing Projects Esenyurt Housing Project Transaction Overview: • Being developed on 56.800 m² land which is purchased on May 2013 • Construction permit granted on December 2013 for the project including aproximately 1.444 residential and 25 retail units • Project has been la
Slide 60: Tekfen Services - Facility Management
Real Estate Development Tekfen Services - Facility Management • Facility Management of Tekfen Tower, Taksim Residences, Tekfen Offices, Yalıkavak Tekfen Houses, Gumusluk Muskulum Ciftligi, Kagithane Office Park, Levent Office and S-Cafe are directed and operated by Tekfen Tourism & Facility Manageme
Slide 61: Real Estate Development Assets
Real Estate Development Assets • Tekfen Holding earns rental income from the offices it owns in Akmerkez and Tekfen Tower. • Tekfen Tower has 33.000 m² rentable area, of which, 25% is used by Group Companies, while the rest is rented to various institutions. •Total rental income from Tekfen Tower am
Slide 62: Real Estate Development Social Responsibility
Real Estate Development Social Responsibility • The concept of “environmental friendly / sustainable building” is becoming more and more important everyday as the awareness and consciousness for energy use and environment increases. Tekfen Real Estate Group, as in its all other projects, is aiming L
Slide 63: Appendix
Tekfen Group Appendix Financial Highlights 64 Net Cash Position 65 Capital Expenditures 66 Disclaimer 67 Contact Info 68 63 Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Slide 64: Financial Highlights – Segmental Breakdown
Tekfen Group Financial Highlights – Segmental Breakdown TRY Million Revenues 2013 % in Total 2014 % in Total 2015E % in Total Contracting 2.327 61% 2.768 62% 2.179 51% Agri Industry 1.423 37% 1.626 36% 1.969 46% Real Estate 30 1% 26 1% 46 1% Other 67 2% 55 1% 43 1% Total 3.846 100% 4.475 100% 4.237
Slide 65: Net Cash Position
Tekfen Group Net Cash Position Tekfen Group Net Cash Position (TRY million) Net Cash Position by segment (TRY million) 635 2012 2013 2014 767 688 636 224 147 69 11 193 Contracting Agri Industry Real Estate Other -99 -91 1 -290 2012 2013 2014 -619-612 65 Tekfen Group Contracting Agri Industry Real Es
Slide 66: Capital Expenditures
Tekfen Group Capital Expenditures Million TRY 402 193 184 97 43 54 2009 2010 2011 2012 2013 2014 Capital Expenditures (Segmental Breakdown, Million TRY) Contracting Agri Industry Real Estate Other Total 2009 26,5 15,3 0,7 0,8 43,3 2010 30,0 10,2 0,2 13,5 53,9 2011 78,4 11,4 0,3 6,4 96,5 2012 142,6 4
Slide 67: Disclaimer
Tekfen Group 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. N
Slide 68: Contact Information
Tekfen Group Contact Information • 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, Vice President, Projects Planning and Control e-