Alarko Holding A.s. · BIST:ALARK
Alarko Holding A.s — Q4 2023 Earnings Presentation
40 slides from Alarko Holding A.s's earnings presentation, 2024
Slide 1: Q4 2023 Investor Presentation
Q4 2023 Investor Presentation
Slide 2: Strong and Solid Growth via Diversified Portfolio
Update on Q4 2023 Strong and Solid Growth via Diversified Portfolio Achieved successful operational and financial results thanks to our diversified portfolio, prudent financial policies, conservative risk policies, and digitalization strategy. • Combined sales revenue reached 17 bn TL in Q4 2023. •
Slide 3: Powerful and Reputable Holding Rising Worldwide
Alarko Holding Powerful and Reputable Holding Rising Worldwide • Founded in 1954 by İshak Alaton and Üzeyir Garih • One of the pioneers in the stock exchange listed since 1974 • Leading industrial experience with over 65 years • 7 different fields of activity • Energy • Construction • Land Developme
Slide 4: Alarko Holding
Alarko Holding Market Cap. Last 3 month Avg Volume Listed Companies Free Float (in TL mn)* (in TL mn) Alarko %33.6 39.411 715 Alarko Carrier %15,9 11.208 146 Alarko GYO %48,8 5.347 63 as of 30.12.2023 İzzet Garih %17,7 Free Float %33,6 Vedat A. Alaton %15,3 Other %3,1 Leyla Alaton %16,3 Dalia Garih
Slide 5: 2,0 bn TL Solo Holding Cash in YE 2023
Grows with the value it creates… Significant EBITDA Growth (TL mn)* 2,0 bn TL Solo Holding Cash %24 %20 %23 EBITDA Margin %18 %32 %37 25.627 in YE 2023 CAGR 23.501 %65 2.116 2.254 3.303 4.643 Accelerating Revenue Growth (TL mn)* 73.823 70.081 2018 2019 2020 2021 2022 2023 CAGR 25.672 %51 8.972 11.16
Slide 6: Current Operations
Current Operations Power Production & Distribution Construction Land Development Industry & Trade Altek (%100) Alcen (%50) Alen (%100) Alsim (%100) Alarko GYO (%51) Alarko Carrier (%43) 2023 Share in Combined Revenue: %80 2023 Share in Combined Revenue : %10 2023 Share in Combined Revenue : %0 2023
Slide 7: Power: Generation
Current Operations Power Access to full potential via Generation & Distribution… Generation • Total of 1.539 MW installed capacity, implying 2% of Turkey’s installed capacity • Power plants: • 2 Hydro • 1 Solar • 1 Natural Gas • 1 Imported Coal Power Plant • Diversified portfolio with renewable sour
Slide 8: Power: Distribution & Retail
Current Operations Power Focused on serving the entire energy sector… Distribution & Retail • Took over Meram through privatization in 2009 by paying 440 mn USD (License Expiry: August 2036) • Covers 6 provinces- 10% of Turkey’s total area • Reaching close to 2,4 mn electricity subscribers every day
Slide 9: Power: Revenue and Operating Profit
Current Operations Power Generation & Distribution/Retail Revenue (TL mn)* Generation & Distribution/Retail Operating Profit (TL mn)* Generation 7.354 9.382 12.297 19.802 60.123 56.305 Generation 1.664 1.880 2.745 3.787 21.980 24.190 Distribution & Retail Distribution & Retail 26.732 23.200 11.312 1
Slide 10: Power: EBITDA and Net Profit
Current Operations Power Generation & Distribution/Retail EBITDA (TL mn)* Net Profit (TL mn)* 1.800 2.033 2.902 3.950 22.209 21.502 (235) 503 1.540 2.606 21.120 30.581 Generation Generation Distribution & Retail Distribution & Retail 12.127 11.465 16.209 15.376 13.051 18.454 CAGR CAGR 1.826 6.000 %7
Slide 11: Construction
Current Operations Construction The power that transforms into the future… • Expertise covers airports, rail systems, infrastructure works, industrial facilities, business centers, hotels, and hospitals • Aims to be the first choice in international projects by leveraging its know-how and quality in
Slide 12: Construction: Financials
Current Operations Construction Operating Profit & EBITDA (TL mn)* Revenue (TL mn)* 10.659 7.264 2018 2019 2020 2021 2022 2023 4.121 317 769 952 1.130 293 2018 2019 2020 2021 2022 2023 64 69 3 5 13 -12 Net Profit (TL mn)* -136 -121 2018 2019 2020 2021 2022 2023 308 112 32 -466 -59 -82 -503 -704 12 |
Slide 13: Land Development
Current Operations Land Development Accumulated experience of over 50 years… • First listed REIT in the stock exchange • Negotiates the contracts with landowners on a revenue or profit sharing basis • Seeks hotels and resorts with high potential • Sustainable rental revenue of 8-10 mn USD per year •
Slide 14: Land Development: Financials
Current Operations Land Development Operating Profit & EBITDA (TL mn)* Revenue (TL mn)* 305 172 136 668 670 48 49 40 550 558 2018 2019 2020 2021 2022 2023 367 383 Net Profit (TL mn)* 200 202 186 193 123 130 4.847 2018 2019 2020 2021 2022 2023 2.759 1.265 274 390 350 2018 2019 2020 2021 2022 2023 14
Slide 15: Industry & Trade
Current Operations Industry & Trade Raises the bar in the industry with a perfectionist approach… • Formed an Equal- share partnership with Carrier in 1998 (%42 each) • Fields of business include heating, cooling, ventilation, and water pressurization • Extensive and strong sales and service network
Slide 16: Industry & Trade: Financials
Current Operations Industry & Trade Operating Profit & EBITDA (TL mn)* Revenue (TL mn)* 4.605 538 2.210 504 1.265 636 585 791 387 2018 2019 2020 2021 2022 2023 358 Net Profit (TL mn)* 130 101 109 72 80 86 23 34 601 2018 2019 2020 2021 2022 2023 49 62 73 16 5 2018 2019 2020 2021 2022 2023 16 | Alarko
Slide 17: Tourism
Current Operations Tourism Dedicated to making people feel good… • Operates city club and hotels in Turkey, under the brand “Hillside” • Hillside beach club – introduced the leisure concept in Turkey with 330 rooms & 781 bed capacity • Occupancy rate of 76% in 2023 • Repeat guest rate of 76% • Targe
Slide 18: Tourism: Financials
Current Operations Tourism Operating Profit & EBITDA (TL mn)* Revenue (TL mn)* 1.113 357 600 330 300 150 177 141 2018 2019 2020 2021 2022 2023 213 190 133 114 Net Profit (TL mn)* 45 37 27 28 22 2018 2019 2020 2021 2022 2023 20 2018 2019 2020 2021 2022 2023 13 -8 -74 -129 -182 -259 18 | Alarko Q4 202
Slide 19: Agriculture
New Operations Agriculture 360 Degree Value Creation… • Alarko Holding, as of 2023, has designated “Agriculture” as a strategic and priority sector • Alarko Tarım conducts its operations under 5 segments: Greenhouses, Fertilizers, Seeds, and Food Processing • Aiming to be in the top 10 in the world
Slide 20: Investment
New Operations Investment Value creation through diversified investment strategy… • The ALSER portfolio was established in July 2023 Equity Fund Investments Public Equity: • Active in the capital markets with a portfolio investment of 550 mn TL as of YE23 • An annual investment of 20 mn USD is alloc
Slide 21: Holding Land Portfolio: Assets that will uncover
Holding Land Portfolio Assets that will uncover… Alarko Holding Land Portfolio (TL mn) – 31.12.2023 Adj. Book Expertise Value Land in Antalya - 225,8 Land in Sariyer – Istanbul - 549,8 Offices in Istanbul - 18,5 Investment Properties Land in Buyukcekmece – Istanbul - 6,8 Offices in Adana - 6,5 Total
Slide 22: Strategy
Strategy
Slide 23: Alarko Target Revision: 2030 Vision New Target 2028
Alarko Target Revision NAD- 3.0 NAD- 1.1 BLN USD* BLN USD* 2030 Vision Breakdown of Activities * As of initiation of vision dated back January 1st 2022 Land Power ContructionDevelopment Industry Tourism %81 %4 %6 %3 %5 2028 Target NAD- 4.0 BLN USD* New Target - 2028 Organic New Business Inorganic 23
Slide 24: Organic & Inorganic Growth
Growth Opportunities Organic & Inorganic Growth… Power Land Development Industry & Trade Portfolio Development Plans Leisure Focused Investments Water Pressurization System, Storage, Battery & Efficiency Expanding Hillside Brand via New Water Pump, and Broiler Investments Acq. Investments Alarko Agr
Slide 25: Holding to become a portfolio management center
In 2028 The goal is for the Holding to become a portfolio management center and to increase its value to 4 bn USD Balanced Portfolio 25 | Alarko Q4 2023 Investor Presentation
Slide 26: In 2028: Existing Operations, New Business Lines, Alarko Investment
In 2028 Existing Operations New Business Lines Alarko Investment %55 %35 %10 26 | Alarko Q4 2023 Investor Presentation
Slide 27: Financials
Financials
Slide 28: Combined Financial Results: Revenue
Combined Financial Results Combined Revenue (TL mn)* 73.823 70.081 2.210 10.659 4.605 7.264 33.391 23.460 33.105 16.969 644 5.067 1.250 1.579 8.260 26.732 7.572 23.200 9.366 6.186 Q4 2022 Q4 2023 FY 2022 FY 2023 Power Gen. Power Dist&Retail Construction Land Dev. Industrial Holding Tourism Agricultu
Slide 29: Combined Financial Results: EBITDA
Combined Financial Results Combined EBITDA (TL mn)* 25.627 23.501 670 383 6.000 13.051 8.438 6.946 83 16.209 5.575 11.465 2.498 4.249 3.704 -1 Q4 2022 Q4 2023 FY 2022 FY 2023 Power Gen. Power Dist&Retail Construction Land Dev. Industrial Holding Tourism Agriculture Combined EBITDA was realized at TL
Slide 30: Combined Financial Results: Net Profit
Combined Financial Results Combined Net Profit (TL mn)* 35.888 4.847 24.944 2.759 10.342 18.454 9.206 5.744 4.238 2.364 15.376 12.127 2.001 3.796 4.123 3.062 Q4 2022 Q4 2023 FY 2022 FY 2023 Power Gen. Power Dist&Retail Construction Land Dev. Industrial Holding Tourism Agriculture Combined net profit
Slide 31: Balance Sheet Developments
Balance Sheet Developments Debt Position (TL mn)* 32.270 19.599 13.090 Cash Position (TL mn)* 5.963 6.082 6.919 5.688 1.695 374 344 200 217 15.894 2018 2019 2020 2021 2022 2023 13.096 Consolidated Debt Combined Debt 9.727 37% of the combined debt will be paid within one year, and 5% will have a matu
Slide 32: Power Generation Operations in the Quarter
Power Generation Operations in the Quarter Net Power Generation (KWh)* Revenue (TL mn)* 243.632 26.732 100.052 23.200 10.675.324 9.183.156 21.199 29.666 9.366 2.873.810 2.502.246 6.186 Q4 2022 Q4 2023 FY 2022 FY 2023 Cenal Karakuz HES Gonen HES Solar Q4 2022 Q4 2023 FY 2022 FY 2023 Power generated i
Slide 33: Power Distribution & Retail Operations in the Quarter
Power Distribution & Retail Operations in the Quarter EBITDA (TL mn)* 13.051 6.000 Revenue (TL mn)* 5.575 2.498 33.391 33.105 Q4 2022 Q4 2023 FY 2022 FY 2023 EBITDA Margin was realized at 40% in Q4 2023 Net Profit (TL mn)* 18.454 8.260 7.572 Q4 2022 Q4 2023 FY 2022 FY 2023 5.744 3.796 Sales revenue
Slide 34: Construction Operations in the Quarter
Construction Operations in the Quarter EBITDA (TL mn)* 317 124 Q4 2022 Q4 2023 FY 2022 FY 2023 Revenue (TL mn)* -466 10.659 -1.009 7.264 EBITDA for the 4th quarter of 2023 was realized as -1 bn TL 5.067 Net Profit (TL mn)* 308 199 1.579 Q4 2022 Q4 2023 FY 2022 FY 2023 Q4 2022 Q4 2023 FY 2022 FY 2023
Slide 35: Land Development Operations in the Quarter
Land Development Operations in the Quarter EBITDA (TL mn)* 670 383 Revenue (TL mn)* 83 305 Q4 -1 2022 Q4 2023 FY 2022 FY 2023 EBITDA for the 4th quarter of 2023 was realized as 83 mn TL 172 Net Profit (TL mn)* 4.847 4.238 33 21 2.759 2.364 Q4 2022 Q4 2023 FY 2022 FY 2023 Sales revenue for the 4th qu
Slide 36: Industry Operations in the Quarter
Industry Operations in the Quarter EBITDA (TL mn)* 538 387 Revenue (TL mn)* 167 83 4.605 Q4 2022 Q4 2023 FY 2022 FY 2023 EBITDA for the 4th quarter of 2023 has reached 167 mn TL 2.210 Net Profit (TL mn)* 601 1.250 644 375 Q4 2022 Q4 2023 FY 2022 FY 2023 Sales revenue has reached 1,250 mn TL in 4th q
Slide 37: Tourism Operations in the Quarter
Tourism Operations in the Quarter EBITDA (TL mn)* 357 213 Revenue (TL mn)* 1.113 44 23 Q4 2022 Q4 2023 FY 2022 FY 2023 EBITDA for the 4th quarter of 2023 was realized as 44 mn TL 600 Net Profit (TL mn)* 9 145 82 -77 Q4 2022 Q4 2023 FY 2022 FY 2023 -129 Sales revenue for the 4th quarter of 2023 was r
Slide 38: Combined & Consolidated Financial Results
Combined & Consolidated Financial Results… Combined P&L (TL mn)* 2019 2020 2021 2022 2023 Revenue 11.163 14.417 25.672 73.823 70.081 EBITDA 2.254 3.303 4.643 23.501 25.627 EBITDA Margin %20 %23 %18 %32 %50 Net Profit 970 2.163 3.731 24.944 35.888 • Combined Figures - Figures consider full ownership
Slide 39: Consolidated Financial Results: Balance Sheet
Consolidated Financial Results… Consolidated Balance Sheet (TL mn)* 2023 2022 Assets 59.359 51.832 Current Assets 15.705 14.787 Cash & Cash Equivalents 3.274 8.385 Financial Investments 6.453 1.189 Non-current Assets 43.654 37.045 Liabilities 15.412 14.144 Current Liabilities 13.165 12.323 Short-ter
Slide 40: Disclaimer
Disclaimer Alarko 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’s management. Neither the C