Enka Insaat Ve Sanayi A.s. · BIST:ENKAI
Enka Insaat Ve Sanayi A.s — Q2 2023 Earnings Presentation
43 slides from Enka Insaat Ve Sanayi A.s's earnings presentation, August 2023
Slide 1: 2Q 2023 Presentation
2Q 2023 PRESENTATION 1 / 42
Slide 2: Introduction
INTRODUCTION Experience Synergy 66 Years of construction experience Group of companies composed of more worldwide than 50 subsidiaries operating in 7 major geographical areas: Reliability CIS, Asia, Middle East, Europe, America, Africa & Turkiye 570 projects in 52 countries have been completed or un
Slide 3: Milestones [1957-1976]
M I L E S T O N E S [1957-1976] design, engineering and Contract Benghazi Cement construction activities of industrial Factory and then 4 more cement plants, buildings and infrastructure factory projects in Libya Founded The First Power Partnership Plant Focused First on International as a limited l
Slide 4: Milestones [1977-1996]
M I L E S T O N E S [1977-1996] Combined Cycle Power Plant in Establishment of development Turkiye: 600 MW Trakya CCCP companies in Moscow, Russia Foundation Outstanding Oil Fields First Natural Real Estate Gas achievements with fast-track projects in ENKA Sports, education and culture Libya, Russia
Slide 5: Milestones [1997-2006]
M I L E S T O N E S [1997-2006] Power Generation 790 MW Rijnmond Natural Gas Fired as Independent Power Producer (IPP) CCPP has been completed in 22 months by the ENKA Bechtel Joint Venture in the Netherlands Retail Certified World Business Record Power Gas Fired Generation CCPP ENKA set a new world
Slide 6: Milestones [2007-2016]
M I L E S T O N E S [2007-2016] ENKA as a main contractor has been A contract related to South Caucasus awarded 400 MW Yajva State District Pipeline Expansion (SCPX) has been Power Plant EPC Project in Russia awarded to Bechtel-ENKA JV Iraq Power Plants Oil & Gas Re-Entry EPC in Caucasus Russia Pipe
Slide 7: Milestones [2017-2023]
M I L E S T O N E S [2017-2023] ENKA with its partner General Electric, Cimtas Ningbo is Aerospace Standard 9100D designed and built the Samawa and certified. Dhi Qar CCPPs, which added 750 MW Cimtas Ningbo is amongst the first piping and each to Iraq skid fabricators certified to the AS9100D standa
Slide 8: Milestones [2017-2023]
M I L E S T O N E S [2017-2023] ENKA UK Construction Ltd. is contracted The first cruise port construction project to prefabricate, install and erect all received at the Bahamas. piping systems of the power island at Hinkley Point C Nuclear Power Station. Germany Excellence Balkans England Bahamas E
Slide 9: Commitments: Mission, Vision, Values
COMMITMENTS Mission Vision Values Our Mission Our Vision Our Values to be one of the best define how we do work at ENKA. to design, build and deliver safe, and innovative We will not undertake or execute high-quality, and cost-effective engineering & a project which comprises any of construction pro
Slide 10: Sustainability
SUSTAINABILITY ENKA, which operates in different sectors such as engineering and construction, energy, real estate and trade in many different geographies, has made a commitment to serve sustainable development in all its operations. The approach which ENKA has adopted to corporate sustainability is
Slide 11: Sustainability: Our Business and Principles
SUSTAINABILITY Our Business and Principles ENKA, • Maintains an Ethics & Compliance Program to ensure open, honest and transparent communication with all stakeholders in accordance with applicable national & international laws and regulations, as well as company values and industry standards. • Adop
Slide 12: Sustainability: Our People and Community
SUSTAINABILITY Our People and Community ENKA, • Respects human rights and assesses the human rights impacts of its investments and operations as part of its social impact assessment process. • Includes its stakeholders in the decision-making mechanisms of the company and provides transparent, effect
Slide 13: Sustainability: Our Planet
SUSTAINABILITY Our Planet ENKA, • Assesses, measures and reports its environmental impacts and develops plans and procedures to reduce them. • Commits to reach net zero emissions in its operations by 2050 and takes actions to reduce direct and indirect emissions from its projects, operations and sup
Slide 14: Shareholding
SHAREHOLDING SHAREHOLDER SHARES TARA HOLDING A.Ş. 49,80% VİLDAN GÜLÇELİK 7,99% SEVDA GÜLÇELİK 6,43% 31,39% ENKA FOUNDATION 5,87% 10,12% ALİ GÜLÇELİK 4,50% 5,87% MİKADO REAL ESTATE INVESTMENT 4,37% 2,29% BİLGİ GÜLÇELİK 4,31% NURDAN GÜLÇELİK 1,56% 50,33% SELİM GÜLÇELİK 1,55% AYŞE VERDA GÜLÇELİK 0,68%
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS 2Q 2023 2022 2021 2020 2019 TOTAL ASSETS 8.328 8.581 9.102 8.454 8.318 TOTAL EQUITY 6.392 6.471 6.675 6.694 6.568 CASH & MARKETABLE SECURITIES 4.732 4.597 5.265 4.406 3.960 REVENUE 1.630 3.731 2.859 1.659 1.893 EBITDA 309 820 686 386 436 EBITDA MARGIN 19,0% 22,0% 24,0% 23,3% 23,
Slide 16: Revenues by Business Lines
REVENUES BY BUSINESS LINES 2Q 2023 2022 2021 2020 2019 USD % USD % USD % USD % USD % CONSTRUCTION 1.019 62,5 1.933 51,8 1.569 54,9 1.263 76,1 1.147 60,6 POWER GENERATION 385 23,6 1.298 34,8 797 27,9 0 0,0 324 17,1 REAL ESTATE 159 9,8 344 9,2 304 10,6 289 17,4 346 18,3 TRADE 121 7,4 247 6,6 252 8,8 1
Slide 17: EBITDA by Business Lines
EBITDA BY BUSINESS LINES 2Q 2023 2022 2021 2020 USD % MRG USD % MRG USD % MRG USD % MRG CONSTRUCTION 168 54 16 483 59 25 385 56 25 201 52 16 POWER GENERATION 7 2 2 92 11 7 67 10 8 (17) (4) - REAL ESTATE 102 33 64 194 24 56 194 28 64 187 48 65 TRADE 33 11 27 51 6 21 40 6 16 16 4 10 ELIMINATION (1) 0
Slide 18: Share Capital Increases
SHARE CAPITAL INCREASES DATE PREVIOUS SHARE INCREASE INCREASE (%) INCREASED SHARE CAPITAL CAPITAL 25.02.2012 2.500 300 12,00 2.800 12.06.2013 2.800 400 14,29 3.200 21.05.2014 3.200 400 12,50 3.600 06.05.2015 3.600 400 11,11 4.000 23.05.2016 4.000 200 5,00 4.200 27.04.2017 4.200 400 9,52 4.600 24.05.
Slide 19: Dividend Payments
DIVIDENT PAYMENTS CASH DIVINDEND D.P.F.S.* YEAR DATE GROSS RATE NET RATE TL USD TL USD 2022 12.04.2023 36,33% 33,24% 2.180 116,2 35,6 1,90 2022 TOTAL 2.180 116,2 35,6 1,90 05.01.2022 20,00% 18,00% 1.120 84,9 0 0 2021 13.04.2022 50,00% 45,00% 2.800 190,9 61,0 4,16 2021 TOTAL 3.920 275,9 61,0 4,16 202
Slide 20: Share Buyback
SHARE BUYBACK DECISION TAKEN ACTION SHARE AMOUNT NUMBER OF TOTAL PERCENTAGE BOUGHT SHARES JULY 2016 Share Buyback 8,4 Million 4,2 Billion 0,20% JULY 2017 Share Buyback 4,6 Million 4,6 Billion 0,10% AUGUST 2017 Share Buyback 4,6 Million 4,6 Billion 0,10% JANUARY 2018 Share Buyback 4,6 Million 4,6 Bil
Slide 21: Achievements & Awards
ACHIEVEMENTS & AWARDS YAJVA ADMIRED COMPANY ENKA’s 411 MW CCPP Yajva State District Power Plant "Most Admired Construction Company EPC Project has been awarded “the Best Project in the of Turkiye awards" for the years 2005 - 2012 by Power/Industrial Category” in 2013 Global Best Projects CAPITAL, a
Slide 22: Achievements & Awards
ACHIEVEMENTS & AWARDS RISK MANAGEMENT GLOBAL Turkish Power Company ENKA POWER has world class risk ENKA’s EPC Project, Sulaymaniyah 1.500 MW management article which praises ENKA's commitments Combined Cycle Power Plant Project was and achievements in protecting the power plant assets selected as th
Slide 23: Engineering & Construction
ENGINEERING & CONSTRUCTION The fields of Engineering & ENKA’s global solutions span Construction activities are; the entire project life cycle: Oil & Gas Facilities, Pipelines Engineering, Petrochemical Plants Fabrication, Power Plants Procurement, Industrial Plants Construction, Airports, Harbors,
Slide 24: Backlog
BACKLOG COUNTRY BACKLOG % Special Projects 1.141 24,5% Serbia 743 15,9% North Macedonia 712 15,3% England 556 11,9% Russia 433 9,3% Germany 284 6,1% * The group «Others» consists of the following countries: Kazakhstan 189 4,0% Bahrain, Bangladesh, Belgium, Brazil, China, Croatia, France, Greece, USA
Slide 25: Projects Under Construction: Tengiz, Kazakhstan
PROJECTS UNDER CONSTRUCTION FGP 3GP Mechanical, Electrical & Instrumentation Installation Works Tengiz, Kazakhstan Job owner : Tengizchevroil Contractor : Senimdi Kurylys (Bechtel – ENKA Joint Venture with equal shares) Senimdi Kurylys LLP has been awarded a contract for mechanical, electrical and i
Slide 26: Projects Under Construction: Morava Corridor Motorway
PROJECTS UNDER CONSTRUCTION Morava Corridor Motorway Project Pojate – Preljina, Serbia Job owner : Government of the Republic of Serbia Ministry of Construction, Transport and Infrastructure ENKA and its joint venture partner Bechtel have been selected by the Government of the Republic of Serbia to
Slide 27: Projects Under Construction: North Macedonia Motorway
PROJECTS UNDER CONSTRUCTION Corridor 8 & 10d Motorway Project, North Macedonia Job owner : Public Enterprise for State Roads and the Ministry of Transport and Communications on behalf of the Government of the Republic of North Macedonia ENKA, with its joint-venture partner Bechtel, will build 109 km
Slide 28: Projects Under Construction: Shotton Paper Mill
PROJECTS UNDER CONSTRUCTION Shotton Paper Mill, United Kingdom Job owner : Shotton Mill Limited (Modern Karton/EREN Holding) ENKA signed a contract for the construction of a Paper Mill Factory on the Dee Estuary in Flintshire, North Wales for Shotton Mill Limited owned by Modern Karton/EREN Holding,
Slide 29: Projects Under Construction: Prince George Wharf, Bahamas
PROJECTS UNDER CONSTRUCTION Marine & Land Works in Prince George Wharf, Nassau, the Bahamas Job owner : Nassau Cruise Port Limited (NCPL) Contractor : ENKA Construction and Development B.V. NCPL proposes to reinvigorate the current tourism infrastructure in Nassau by boosting the cruise ship arrival
Slide 30: Projects Under Construction: Hinkley Point C
PROJECTS UNDER CONSTRUCTION Hinkley Point C Nuclear Power Plant – Prefabrication, installation & erection of piping systems of power island - England Job owner : GE Steam Power Ltd. ENKA UK Construction Ltd., a subsidiary of ENKA İnşaat ve Sanayi A.Ş., is contracted by one of the main contractors on
Slide 31: Projects Under Construction: Dradenau CHP Plant
PROJECTS UNDER CONSTRUCTION Dradenau Combined Heat and Power Plant - Germany Job owner : Wärme Hamburg GmbH On 15 September 2021, ENKA with its JV partner Uniper signed a contract with Waerme Hamburg GmbH for the turnkey construction of approximately 180 MW electric and district heating capacity of
Slide 32: Engineering Fabrication
ENGINEERING FABRICATION ÇİMTAŞ, a subsidiary of ENKA, is a leading provider of integrated engineering, procurement, welded fabrication, assembly and installation solutions for top-tier global customers. ÇİMTAŞ was incorporated in 1973 in Turkey as a local steel fabricator and now an EPMFI group of 5
Slide 33: Engineering Fabrication
ENGINEERING FABRICATION 33 / 42
Slide 34: Engineering Foundation
ENGINEERING FOUNDATION KASKTAŞ, wholly owned subsidiary of ENKA, was established in 1957 as the piling group of ENKA. Having a vast and modern machinery and equipment fleet, KASKTAŞ has the ability to fulfill diverse requirements in the field of geotechnical engineering both in Turkiye and abroad. D
Slide 35: Real Estate
REAL ESTATE TYPE SIZE (NLA) OCCUPANCY RATE Class A Office Area 389.000 m2 90% 540 Retail Area 368.000 m2 93% 275 5 Star Hotel 235 Rooms * * All assets are located in Moscow, except 1 shopping center which is located in St.Petersburg. * Occupancy and rate of rooms of the hotel may vary daily. 35 / 42
Slide 36: Real Estate: Office and Retail Assets
REAL ESTATE OFFICE ( 389.000 m2 ) 12 Naberezhnaya Tower 13 Paveletskaya 14 Moskva Krasnye Holmy 15 MosENKA 16 Ochenovski Naberejnaya RETAIL ( 368.000 m2 ) 1 Leningradsky 2 Kuntsevo Plaza 3 Maryina Roshcha 4 Kashirskaya 5 Sevastopolsky 6 Vernadskogo 7 Belyaevo 8 Podolsk 9 Orekhovo-Zuyevo 10 Sergiev P
Slide 37: Real Estate: Rental Revenue and EBITDA
REAL ESTATE YEAR RENTAL REVENUE EBITDA EBITDA MARGIN 2Q 2023 159 102 65,2% 2022 344 194 56,4% 2021 304 194 63,8% 2020 289 187 64,7% 2019 346 213 61,6% 2018 329 204 62,0% 2017 319 193 60,5% 2016 319 223 69,9% All figures given above are in Million US Dollars 37 / 42
Slide 38: Real Estate: Tenants
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Slide 39: Power Generation
POWER GENERATION 3 Gas-Fired Combined Cycle Power Plants Gebze, Adapazarı and Izmir with a total capacity of almost 4,1 Gigawatts Annual generation capacity is 32 Billion Kwh net and the annual natural gas consumption could reach 6.5 Billion CBM, Capability of meeting 10% of Turkey’s total demand, s
Slide 40: Power Generation: Kırklareli CCPP Project
POWER GENERATION New Investment Project – ENKA Kırklareli Combined Cycle Power Plant The new investment project fully owned by ENKA. It will be financed by own sources. The power plant will be located in Kırklareli Babaeski. Approximately 200 kilometers away from Istanbul. It will have a total capac
Slide 41: Power Generation: Turkey Electricity Consumption
POWER GENERATION 2021 2022 YEAR Million Kwh % Million Kwh % Coal 104,115 33.1 113,611 36.5 Hydro 55,473 17.6 66,606 21.4 Natural Gas 107,340 34.1 71,864 23.1 Wind 30,901 9.8 34,561 11.1 Geothermal 10,105 3.2 10,223 3.3 Others 8,607 2.7 11,721 3.8 International (Net) (1,858) (0.6) 2,704 0.9 Total Con
Slide 42: Power Generation: Turkey Generation Trend
ENKA 320 280 240 200 160 120 80 POWER GENERATION M@@BBILLON KWH ===CHANGE 144 150 161 175 190 198 2003 2004 2005 2006 2007 2008 2009 2010 2011 194 210 230 242 246 255 264 275 290 292 290 291 315 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 31 2022 12% 10% B% 6% 4% 2% ° % = 2% =4% 42/42
Slide 43: Contact Details
Balmumcu Mah., Zincirlikuyu Yolu No: 10, 34349 Beşiktaş / İstanbul Tel: +90 (212) 376 10 00 (pbx) Fax: +90 (212) 272 88 69 e-mail: enka@enka.com web: https://www.enka.com ENGINEERING FOR A BETTER FUTURE 43 / 42
ENKA İnşaat ve Sanayi A.Ş. — Q2 2023 Earnings Presentation on 6ix