Alarko Holding A.S. · BIST:ALARK
Alarko Holding A.S — Investor Presentation (September 2006)
55 slides from Alarko Holding A.S's investor presentation, September 2006
Slide 1: Alarko Group of Companies Investor Presentation
Alarko Group of Companies Investor Presentation For further information: http://www.alarko.com.tr info@alarko.com.tr Ömer Çelik, Finance Manager Omer.celik@alarko.com.tr Tel: +90 (212) 227 52 00 Bener Dağlıer, Finance Specialist Bener.daglier@alarko.com.tr Alarko Center, Istanbul-Turkey Tel: +90 (21
Slide 2: Table Of Contents
Table Of Contents Introduction....................................................................................................... 3 Financial Highlights........................................................................................... 5 Growth Strategy...................................
Slide 3: Introduction
Introduction Alarko was founded in 1954 and today operates in six main areas. These are: 9 Contracting 9 Land development 9 Industry and trade 9 Tourism 9 Energy 9 Seafood products Three companies of the group are trading on the ISE. These are: NAME OF THE COMPANY ISE FREE FLOAT PAID IN CAPITAL MARK
Slide 4: Alarko Holding – Shareholder Structure & Participations
Alarko Holding – Shareholder Structure & Participations * Consolidation Method ALSIM (97%) - Contracting Full HAS 69,4% PARTICIPATION ALARKO CARRIER (42%) – Industry & Trade Proportional ALGYO (50%) – Full ANMAK ALARKO Land Development HOLDING HOLDING ATTAS (95%) - Tourism Full ALTEK (38%) - Energy
Slide 5: Alarko Holding Financial Highlights
Alarko Holding Financial Highlights CONSOLIDATED IFRS FINANCIALS US$ Million Selected Figures 30.06.2005 31.12.2005 30.06.2006 Total Assets 689 772 727 Total Equity 304 373 334 Cash & Mrk. Sec. 202 226 220 Financial Liabilities 57 67 68 Revenues 175 425 164 EBITDA 13.5 35 8 EBITDA Margin % 8 8 5 5
Slide 6: Combined Revenues
COMBINED REVENUES US$ Million CONTRACTING INDUSTRY-TRADE TOURISM ENERGY LAND DEVELOPMENT FOOD 2007F TOTAL: 624 350 2006F TOTAL: 607 326 300 2005 TOTAL: 465 248 249 2004 TOTAL: 387 250 215 197 200 181 170 2003 TOTAL: 217 136 150 111 98 100 77 39 27 32 28 50 24 27 29 20 12 13 8 2 6 0 5 6 5 9 0 0 2003
Slide 7: Combined Revenue Breakdown by Groups
COMBINED REVENUE BREAKDOWN BY GROUPS CONTRACTING INDUSTRY-TRADE TOURISM ENERGY LAND DEVELOPMENT FOOD 1% 1% 2% 2% 2% 100% 0% 3% 0% 2% 1% 6% 1% 5% 9% 6% 5% 16% 90% 4% 80% 6% 35% 37% 4% 70% 30% 51% 60% 32% 50% 40% 30% 56% 53% 54% 40% 20% 35% 10% 0% 2003 2004 2005 2006F 2007F *2006 AND 2007 FIGURES ARE
Slide 8: Growth Strategy
Growth Strategy Alarko Holding aims to diversify its business portfolio through expansions into new ventures, while growing its status in existing businesses. Existing Businesses: Contracting 9 Sustain on average a US$ 1.3 billion backlog with new contracting projects both in Turkey and abroad. 9 Le
Slide 9: Growth Strategy: Energy, Tourism, Food
Energy 9 Increase existing generation capacity through organic growth and/or acquisitions, if necessary. Tourism 9 Expand with new investments to leverage the rising global trend for premium-quality tourism, recreation and leisure services. 9 Evaluate acquisition opportunities for new hotels to add
Slide 10: New Businesses: Energy, Lottery
New Businesses: Energy 9 Aggressively pursue electricity distribution privatizations in attractive regions with a leading global player. 9 Become an integrated energy player over the mid-long term. 9 Expand into natural gas distribution over the mid-term, when the existing networks in metropolitan p
Slide 11: Alarko Alsim Contracting
Alarko Alsim Semipalatinsk Irtish River Bridge & Connecting Roads Network Project Semipalantisk - KAZAKHSTAN Contracting 11
Slide 12: Contracting Group
Contracting Group Contracting group, Alsim Alarko operates as a general contractor and main subcontractor locally and globally. The contracting group has established a strong track record in the following areas. These are: 9 Airports 9 Business centers 9 Gas and petroleum pipelines & refineries Kırk
Slide 13: The Contracting Group - Backlog
The Contracting Group - Backlog Projects On Hand Volume Alarko's Completion Cons truction Backlog as of 31/07/2006 Partners Location (Million $) Portion % % Period (Million $) TURKEY ALARKO-ABB Turkey-BOMBARDIER ADANA RAIL SYSTEM PROJECT TRANSPORTATION ADANA 534 57 46 1996 2008 165 ANAMUR-CYPRUS WAT
Slide 14: The Contracting Group - Backlog Descriptions
The Contracting Group - Backlog Projects On Hand D E S C R IP TIO N as of 31/07/2006 TURKEY ADANA RAIL SYSTEM PROJECT Construction of S tations + Underground Railway + S ignalization S ystems + Installation of HVAC S ystems.The project will connect the northern section of the city to the southern se
Slide 15: The Contracting Group - Backlog Descriptions
The Contracting Group - Backlog Projects On Hand D E S C R IP TIO N as of 31/07/2006 TURKEY TUPRAS KIRIKKALE REFINERY NEW REFORMER Korea LG Engineering & Construction Corp.-the S panish Tecnicas Reunidas Corp.-Alsim Alarko-Gama consortium AND DIESEL DESULPHURIZATION UNIT PROJECT signed a constructio
Slide 16: Contracting Group Completed Projects
Contracting Group Completed Projects * : 1. Water and Waste Water (W.W.) Treatment Plants Tuzla Biological W. W. Treatment-Istanbul;Yarımca Petroleum Rafinery W.W. Treatment – Izmit;Izmit Bay W.W Treatment Plant; Arzew Industrial Zone Desalination & Power Plant Project-Oran, Algeria 2. Gas and Pipel
Slide 17: Contracting Group Competitors and JV Partners
Contracting Group MAIN TURKISH COMPETITORS ENKA YAPI MERKEZİ GAMA DOĞUŞ TEKFEN LİMAK NUROL MAIN JV PARTNERS – GLOBAL CONSTRUCTION GROUPS JOHN LAING EBARA CORPORATION SIEMENS ROTEM-HYUNDAI ABB TECNICAS REUNIDAS LG IHI Ltd – JAPAN BOMBARDIER JGC CORPORATION – JAPAN MARUBENI 17
Slide 18: Financial Highlights of Contracting Group
Financial Highlights of Contracting Group CONSOLIDATED IFRS FINANCIALS US$ Million Selected Figures 30.06.2005 31.12.2005 31.06.2006 Total Assets 596 721 645 Total Equity 255 349 290 Cash & Mrk. Sec. 120 134 129 Financial Liabilities 37 43 43 Revenues 135 329 124 EBITDA 13 25 7 EBITDA Margin % 10 8
Slide 19: Land Development
Land Development Land Development Group Alkent Istanbul 2000 Büyükçekmece, Istanbul-Turkey 19
Slide 20: Land Development Group
Land Development Group The land development group: 9 Operates as a developer of mainly residential projects. 9 Designs and builds high quality communities such as villas and condominiums. 9 Mainly targets middle-upper and upper-income clients. 9 Negotiates the contracts with landowners on a profit s
Slide 21: Land Development Group
Land Development Group 9The group pre-sells the units before commencing construction. 9Most clients use bank financing, paying the total upfront. 9Clients not using bank financing make 20-30% down payment and pay the rest in monthly installments. 9Use of bank financing increases upfront cash sales a
Slide 22: Land Development Group Projects
Land Development Group ON - GOING PROJECTS : Revenue 1) Alkent Istanbul 2000 Recreational Town - 3rd Phase 63 villas 50 TOTAL 50 UP - COMING PROJECTS : Revenue 2) Alkent Istanbul 2000 Recreational Town - 4th Phase 128 villas 75 3) Alkent Riva Satellite Town - Total of 6 Phases 3,500-4,000 detached h
Slide 23: Land Development Group: Riva
Land Development Group General Overview Riva 9 A new satellite town is planned on approximately 16 million sqm at the northern part of Istanbul. 9 Alarko controls 5.5 million sqm of this region through subsidiary companies. 9 25% of the area is allocated for roads and parks, as green areas. 9 13-14%
Slide 24: Land Development Group: Riva and Mos Alarko
Land Development Group 9Each phase is composed of single family detached, town houses and garden dublexes 9Approximately 12 different housing units are planned; ranging from 50m2 studio units to 350m2 villas. 9 The project targets middle and middle-upper income group. 9 3,500-4,000 units projected w
Slide 25: Alarko Real Estate Investment Trust
Alarko Real Estate Investment Trust 9 Alarko REIT is the first Real Estate Investment Company in Turkey, offered to public in the beginning of 1997. 9A number of projects have been executed by Alarko REIT since its foundation. 9Fixed income generating assets contribute to its growth as well. 9The co
Slide 26: Alarko REIT Portfolio Value
Alarko Real Estate Investment Trust PORTFOLIO VALUE US$ Thousand 31.12.2005 30.06.2006 CASH AND MARKETABLE SECURITIES 65.974 59.166 REAL ESTATE PORTFOLIO 72.341 67.921 Land in Maslak, Istanbul 17.663 14.786 Land in Eskice Village,Buyukcekmece-Istanbul 9.443 7.291 Land in Orhanlı, Tuzla-İstanbul - 7.
Slide 27: Evolution of Net Asset Value
Alarko Real Estate Investment Trust EVOLUTION OF NET ASSET VALUE US$ Million $200 180 162 168 144 $150 137 121 101 $100 77 78 72 59 47 Estimated Cumulative Average $50 35 Growth Rate 1997- 2009 : 13.4% $- 12.1997 12.1999 12.2001 12.2003 12.2005 12.2007 F 12.2009 F *Conservative growth rate scenario
Slide 28: Housing Gap in Turkey
Housing Gap in Turkey 800.000 Housing surplus H o u s in g U n it s 600.000 400.000 Housing def icit 200.000 - 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Housing Requirement Housing Supply (based on Construction Permits) 9Currently, only 3% of housing finance is
Slide 29: Alarko Carrier Industry & Trade Group
Alarko Carrier Industry & Trade Group Alarko Carrier Gebze Complex, Kocaeli-Turkey Industry&Trade 29
Slide 30: Alarko Carrier - Industry & Trade Group
Alarko Carrier - Industry&Trade Group 9Alarko Carrier was established as a production and engineering company in 1954, and became an equal share partnership with Carrier in 1998. Carrier is the global leader of HVAC and subsidiary of United Technology Corporation. 9Is a major Heating & Cooling produ
Slide 31: Industry & Trade Group
Industry&Trade Group 9The Turkish Heating-Cooling Market Volume is US$ 1.2bn on products basis and US$ 2bn with accessories, installation, service included. 9Alarko Carrier exported over US$ 25mn in 2005. MAJOR EXPORT PRODUCTS MAJOR EXPORT MARKETS Panel Radiators, Air Handling Units, Fan Coils, Grea
Slide 32: Main Growth Triggers for Alarko Carrier
Main Growth Triggers for Alarko Carrier 9Expected rise in natural gas penetration and NG boilers. 9Ongoing upgrade of residential heating systems (Only 20% of houses have centralized heating in Turkey). 9Ongoing boom in housing demands because of the fall in housing loan rates and the upcoming mortg
Slide 33: Industry & Trade Group Competitors
Industry&Trade Group Alarko Carrier’s main competitors are: In Heating 9 Baymak 9 ECA 9 Turk Demir Dokum 9 Vaillant (Germany) In A/C 9 Arcelik 9 Beko 9 Vestel In Pumps 9 Grundfoss (Denmark) 9 Wilo (Germany) 33
Slide 34: Some References
Some References US$ YEAR PROJECT LOCATION TOTAL 1999 WORLD TRADE CENTER ISTANBUL, TURKEY 1,020,000 1999 SABANCI UNIVERSITY ISTANBUL, TURKEY 950,000 2000 TELSIM BASE STATIONS TURKEY 980,000 2001 HOUSING DEVELOPMENT ADMINISTRATION OF TURKEY IRAQ 1,103,000 2001 TENGIZ CHEVROIL KHAZAKHSTAN 498,000 2002
Slide 35: Financial Highlights of Industry & Trade Group
Financial Highlights of Industry & Trade Group CONSOLIDATED IFRS FINANCIALS US$ Million Selected Figures 30.06.2005 31.12.2005 30.06.2006 Total Assets 66 74 68 Total Equity 52 56 48 Cash & Mrk. Sec. 7.2 10 8.7 Financial Liabilities 3.4 4 5.3 Revenues 30.4 72 28.6 EBITDA 3.1 7 2.7 EBITDA Margin % 10
Slide 36: Alarko Attaş Tourism Group
Alarko Attaş Hillside City Club Cardio, Istanbul-Turkey Hillside Su Hotel, Antalya-Turkey Peugeot Cinecity, Istanbul-Turkey Tourism Group Hillside Su Hotel Beach, Antalya-Turkey Hillside City Club, Istanbul-Turkey Tourism 36
Slide 37: Tourism Group
Tourism Group The tourism group, Attaş Alarko owns and operates the most elegant clubs and hotels in Turkey under the highly regarded brand name “Hillside”. Main activities: Management of: 9 Premium holiday villages and hotels 9 Sports and recreation centers 9 Movie theaters Holiday Villages &Hotels
Slide 38: Tourism Group
Tourism Group Hillside Su Hotel: 9 Five star hotel,located in south of Turkey, at the center of Antalya by the sea 9 294 rooms / 592 bed capacity 9 Serves all around the year 9 Has a unique architectural design 9 Rate of occupancy : 56% in 2004 and 65% in 2005 Sports and Recreation Centers Hillside
Slide 39: Turkish Tourism Sector
Turkish Tourism Sector 20 25 18 16 20 14 (Million visitors) (US$ Billion) 12 15 10 8 10 6 4 5 2 - - F 93 94 95 96 97 88 89 00 01 02 03 04 05 06 19 19 19 19 19 19 19 20 20 20 20 20 20 20 Tourism Revenues (left axis) Tourist Arrivals (right axis) 39
Slide 40: Financial Highlights of Tourism Group
Financial Highlights of Tourism Group CONSOLIDATED IFRS FINANCIALS US$ Million Selected Figures 30.06.2005 31.12.2005 30.06.2006 Total Assets 25 36 24 Total Equity 12 15 10 Cash & Mrk. Sec. 6.9 10 8.4 Financial Liabilities 0.9 0.8 0.8 Revenues 10.1 28 10.2 EBITDA -1.6 2 -0.4 EBITDA Margin % - 7* - *
Slide 41: Alarko Altek Energy
Alarko Altek BerdanHydroelectric Power Plant, Mersin-Turkey Hasanlar Hydroelectric Power Plant, Bolu-Turkey Tohma Hydroelectric Power Plant, Malatya-Turkey Kırklareli Gas Fired Combined Cycle Power Plant, Kırklareli-Turkey Tunçbilek Thermal Power Plant, Kütahya-Turkey Energy 41
Slide 42: Energy Group
Energy Group The energy group, Altek is one of the first Turkish BOT companies generating electrical energy. 50% of Altek is owned by SNET (French energy company). Currently 65% share of SNET is owned by ENDESA (Spain). The group has four production units; three Hydroelectric (total capacity 32 MW)
Slide 43: Energy Group
Energy Group Natural Gas Power Plant •Constructed in Kırklareli to operate under free market conditions. •Targeted customers are private sector, specifically commercial and industrial companies. •Total capacity of 85 MW •Started to power generation in January 2006. NEW PROJECT - Karakuz Hydroelectri
Slide 44: Energy Group
Energy Group EXISTING HYDROELECTRIC POWER ANNUAL STARTUP CONCESSION INVESTMENT POWER STATIONS (MW) CAPACITY PERIOD (US$ Million) (MiL. KWH/yr) HASANLAR / DUZCE 9.35 40 1991 20 years 8.2 BERDAN / TARSUS 10 47 1996 15 years 9.3 TOHMA / MALATYA 12.5 58 1998 20 years 11.4 KIRKLARELI 85 500 2006 - 68.4 (
Slide 45: Energy Group
Energy Group 9We plan to expand in the Energy Sector by; • acquiring new power plants • entering into the Electricity Distribution business. Electricity Demand Projection in Turkey by Sectors (billion KWh) 300 262 Agriculture & Bn KWh 250 202 Transportation 154 Bn KWh 200 Bn KWh Residences & 130 Ser
Slide 46: Financial Highlights of Energy Group
Financial Highlights of Energy Group CONSOLIDATED IFRS FINANCIALS US$ Million Selected Figures 30.06.2005 31.12.2005 30.06.2006 Total Assets 46 49 39 Total Equity 29 27 17 Cash & Mrk. Sec. 0.47 0.59 0.14 Financial Liabilities 15 18 19 Revenues 1.2 2.28 3.8 EBITDA 0.8 0.74 -0.3 EBITDA Margin % 65 32
Slide 47: Alarko Alfarm Seafood Products Group
Alfarm Factory, Izmit-Turkey Alarko Alfarm Seafood Products Group Seafood 47
Slide 48: Seafood Group
Seafood Group 9Alfarm was founded in 1991 and formed an equal share partnership with the Norwegian Leroy Seafood Group ASA in 2005. 9Processes and markets salmon and other varieties of seafood. 9Operates a production plant in Izmit over an area of 18,000 sqm, with capacity of 3000 tons per annum. 9S
Slide 49: Alarko Holding Consolidated Balance Sheet
Alarko Holding Inc. CONS OLIDATED BALANCE S HEET AS OF 30.06.2006 (US D) ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS 568.493.940 SHORT TERM LIABILITIES 301.768.164 A. Liquid Assets 148.792.514 A. Financial Liabilities (net) 42.966.856 B. Marketable Securities (net) 71.119.593 B. Curre
Slide 50: Alarko Holding Consolidated Statement of Income
Alarko Holding Inc. CONSOLIDATED STATEMENT OF INCOME (USD) 30.06.2005 31.12.2005 30.06.2006 INCOME FROM PRINCIPAL ACTIVITIES Income From Sales (net) 174.757.992 424.617.407 164.406.118 Cost of Sales (-) (155.709.141) (369.551.853) (151.422.787) Service Income (net) - - - Other Income From Principle
Slide 51: Alarko Holding Consolidated Statement of Cash Flows
ALARKO HOLDING Inc. CONSOLIDATED STATEMENT OF CASH FLOWS AS OF 31.03.2006 USD A. CASH FLOWS FROM PRINCIPAL ACTIVITIES B. CASH FLOWS FROM INVESTMENT ACTIVITIES Net Profit Before Tax + 20.775.911 Addition to financial assets, net 305.289 Adjustments: Addition to marketable securities, net 2.581.216 Am
Slide 52: Statement of Income by Group of Companies
Alarko Holding Inc. STATEMENT OF INCOME ACCORDING TO GROUP OF COMPANIES AS OF 30.06.2006 USD INDUSTRY & HOLDING TOURISM TRADE ENERGY CONTRACTING ELIMINATION TOTAL INCOME FROM PRINCIPAL ACTIVITIES Income From Sales (net) 1.022.142 10.247.023 28.596.095 3.835.821 123.792.938 (3.087.901) 164.406.118 Co
Slide 53: Alarko Carrier Statement of Income
Alarko Carrier Inc. STATEMENT OF INCOME (USD) 30.06.2005 31.12.2005 30.06.2006 INCOME FROM PRINCIPAL ACTIVITIES Income From Sales (net) 71.227.626 167.889.726 66.917.800 Cost of Sales (-) (53.356.074) (126.304.642) (48.347.569) Service Income (net) - - - Other Income From Principle Activities/intere
Slide 54: ALGYO Statement of Income
ALGYO Inc. STATEMENT OF INCOME (USD) 30.06.2005 31.12.2005 30.06.2006 INCOME FROM PRINCIPAL ACTIVITIES Income From Sales (net) 1.606.566 9.070.023 1.772.464 Cost of Sales (-) (577.743) (3.537.417) (602.710) Service Income (net) - - - Other Income From Principle Activities/interest+dividend+rent (net
Slide 55: Corporate Communication
Corporate Communication For further information: http://www.alarko.com.tr info@alarko.com.tr Ömer Çelik, Finance Manager Omer.celik@alarko.com.tr Tel: +90 (212) 227 52 00 Bener Dağlıer, Finance Specialist Bener.daglier@alarko.com.tr Tel: +90 (212) 310 34 16 55
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