Enka Insaat Ve Sanayi A.s. · BIST:ENKAI
Enka Insaat Ve Sanayi A.s — Q1 2018 Earnings Presentation
41 slides from Enka Insaat Ve Sanayi A.s's earnings presentation, 2018
Slide 1: 1Q 2018 Engineering for a Better Future
1Q 2018 ENGINEERING FOR A BETTER FUTURE
Slide 2: Introduction
Introduction EXPERIENCE RELIABILITY EVALUATION 60 Years of construction 515 projects in 45 countries have been Traded publicly in experience worldwide completed or under construction with Borsa Istanbul (BIST) historical value of US $ 46 Billion with a market cap of USD 6,4 Billion (@ 31.03.2018) SY
Slide 3: Milestones [1957-1976]
Milestones [1957-1976] Founded Focused on The Partnership as a limited liability design, engineering and was transformed into a partnership as Şarık Tara & construction activities of joint stock company as Sadi Gülçelik Enka Limited industrial plants, ENKA İnşaat ve Sanayi A.Ş. Şirketi buildings and
Slide 4: Milestones [1977-1996]
Milestones [1977-1996] Foundation First Natural Gas Outstanding ENKA Sports, education combined cycle power achievements with fast- and culture foundation and plant in Turkey 600 MW track projects in Libya, Sadi Gülçelik sports center Trakya CCCP Russia and Former establishments Soviet Union Countri
Slide 5: Milestones [1997-2018]
Milestones [1997-2018] Retail Business Power Generation Certified Development of shopping Power Generation by BSI for ISO 9001 Quality malls and retail business in as Independent Power Management System & ISO Moscow, Russia Producer (IPP) 14001 Environmental Management System & OHSAS 18001 Occupatio
Slide 6: Milestones [1997-2018]
Milestones [1997-2018] Gas Fired CCPP EPC in Russia Airport 790 MW Rijnmond Natural ENKA as a main Completion of Gas Fired CCPP has been contractor has been Sheremetyevo Airport completed in 22 months by awarded 400 MW Yajva Terminal 3 in Moscow, the ENKA Bechtel Joint State District Power Plant Rus
Slide 7: Milestones [1997-2018]
Milestones [1997-2018] Iraq Re-Entry Northern Iraq Oil & Gas ENKA’s re-entry into Iraq oil First contract awarded in Al-Najybia 500 MW gas & gas market by winning Northern Iraq after two decades turbine power plant and the contract for Rumaila Crude Oil mechanical, electrical and Erbil Combined Cycl
Slide 8: Milestones [1997-2018]
Milestones [1997-2018] Caucasus Pipeline Kosovo Power Plants A contract related to South After successfully completing EPC contracts awarded; Caucasus Pipeline Expansion the Route 7 Motorway Project, Simple Cycle Power Plant (SCPX) has been awarded to the new phase; Route 6 has Project at Bazyan, Be
Slide 9: Mission, Vision and Values
Mission, Vision and Values Mission Vision Values Our Mission Our Vision Our Values to design, build and deliver safe, high- to be one of the best and define how we do work at ENKA. We quality and cost-effective construction innovative engineering & will not undertake or execute a projects on schedul
Slide 10: Shareholder Structure
Shareholder Structure 50,66% Tara Family 12,10% Free Float 31,37% Gülçelik Family 5,87% ENKA Foundation Address: 10 of 41 Balmumcu Mah., Zincirlikuyu Yolu No: 10 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Besiktas, Istanbul, Turkey 34349 Web: www.enka.com E-mail: corporate.finance@e
Slide 11: Consolidated Financial Highlights
Consolidated Financial Highlights 2018 1Q 2017 2016 2015 2014 TOTAL ASSETS 8.211 8.031 7.587 7.145 7.813 TOTAL EQUITY 6.347 6.207 5.667 5.126 5.157 CASH & MARKETABLE SECURITIES 3.596 3.479 3.194 2.950 2.990 REVENUE 551 2.900 3.506 4.555 5.821 EBITDA 196 745 732 721 830 EBITDA MARGIN 35,6% 25,7% 20,9
Slide 12: Revenues by Business Lines
Revenues by Business Lines 2018 1Q 2017 2016 2015 2014 USD % USD % USD % USD % USD % CONSTRUCTION 243 44,1 1.195 41,2 1.453 41,5 1.492 32,8 2.139 36,7 POWER GENERATION 206 37,4 1.337 46,1 1.582 45,1 2.512 55,1 3.159 54,3 REAL ESTATE 79 14,3 319 11,0 319 9,1 382 8,4 485 8,3 TRADE 61 11,1 234 8,1 246
Slide 13: EBITDA by Business Lines
EBITDA by Business Lines 2018 1Q 2017 2016 2015 USD % MRG USD % MRG USD % MRG USD % MRG CONSTRUCTION 45 23 19 212 28 18 162 22 11 127 18 9 POWER GENERATION 95 48 46 312 42 23 331 45 21 297 41 12 REAL ESTATE 47 24 59 193 26 61 223 31 70 267 37 70 TRADE 9 5 15 28 4 12 15 2 6 27 4 10 ELIMINATION 0 0 0
Slide 14: Share Capital Increases
Share Capital Increases DATE PREVIOUS INCREASE INCREASE INCREASED SHARE CAPITAL (%) SHARE CAPITAL 25.05.2012 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 All fi
Slide 15: Dividend Payments
Dividend Payments CASH DIVIDEND D.P.F.S.* YEAR DATE GROSS RATE NET RATE TL USD TL USD 15.08.2014 8,00% 6,80% 288 133,6 0 0 2014 14.04.2015 8,33% 7,58% 300 113,4 25,9 9,8 2014 TOTAL 588 247 25,9 9,8 11.11.2015 7,00% 5,95% 280 96,2 0 0 2015 20.04.2016 8,00% 7,10% 320 112,9 22 7,8 2015 TOTAL 600 209,1
Slide 16: Work Force
Work Force ENKA TURKEY Technical : 365 Administrative : 109 ENKA ABROAD Workers : 88 ENKA Abroad Total : 562 Technical : 653 Administrative : 261 Workers : 13.201 Total : 14.115 SUBSIDIARIES TURKEY Technical : 864 Administrative : 484 SUBSIDIARIES Workers : 1.219 Total : 2.567 ABROAD Technical : 33
Slide 17: Awards & Achievements
Awards & Achievements YAJVA ADMIRED COMPANY ENKA’s 411 MW CCPP Yajva State "Most Admired Construction District Power Plant EPC Project has Company of Turkey awards" for the been awarded “the Best Project in the years 2005 - 2012 by CAPITAL, a Power/Industrial Category” in 2013 business and economics
Slide 18: Awards & Achievements
Awards & Achievements RISK MANAGEMENT DEVELOPMENT Turkish Power Company ENKA POWER Kuntsevo Plaza, has been awarded in has world class risk management three categories of the prestigious article which praises ENKA's awards in 2016: Best Retail commitments and achievements in Architecture Russia, Bes
Slide 19: Address: of
Address: 19 of 41 Balmumcu Mah., Zincirlikuyu Yolu No: 10 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Besiktas, Istanbul, Turkey 34349 Web: www.enka.com E-mail: corporate.finance@enka.com
Slide 20: 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,
Slide 21: Backlog as of March 31st, 2018
Backlog as of March 31st, 2018 Country Backlog % Special Projects 820 32 Iraq 780 30 Russia 450 18 Turkey 162 6 Kosovo 98 4 Kazakhstan 84 3 United States 65 3 Georgia 51 2 Others 63 2 Total 2.573 100 All figures given above are in Million US Dollars Address: 21 of 41 Balmumcu Mah., Zincirlikuyu Yolu
Slide 22: Selected Projects Under Construction
Selected Projects Under Construction Samawa and Dhi Qar Combined Cycle Power Plant Projects Job Owner : Ministry of Electricity Location : Samawa (293 Km Northwest of Basra) Nasiriyah (230 Km Northwest of Basra) ENKA Share : USD 668 Million ENKA, with its partner General Electric, will design and bu
Slide 23: Selected Projects Under Construction
Selected Projects Under Construction Besmaya Combined Cycle Power Plant Project Job Owner : Mass Energy Group Holding Ltd. Location : Besmaya, Baghdad – Iraq ENKA is awarded to build the first phase of Besmaya Combined Cycle Power Plant. The green field project, located near to the city of Baghdad a
Slide 24: Selected Projects Under Construction
Selected Projects Under Construction Route 6 Hani i Elezit Motorway Project - Kosovo Bechtel – ENKA General Partnership (50% - 50%) Contract price: EUR 608 Million 60-kilometer motorway linking the capital, Pristina to neighboring Macedonia. The new motorway, Route 6, will connect Kosovo with the su
Slide 25: Selected Projects Under Construction
Selected Projects Under Construction South Caucasus Pipeline Expansion (SCPX) Project – Georgia Contract price: USD 765 Million Contract for the construction and commissioning support of the SCPX Project facilities in Georgia has been awarded to the Bechtel-ENKA Joint Venture The scope of work under
Slide 26: Selected Projects Under Construction
Selected Projects Under Construction Crude Shipment Capacity New Tank Farm Project Tengiz, Kazakhstan Job owne : Tengizchevroil Contractor : Senimdi Kurylys (Bechtel – ENKA Joint Venture with equal shares) An EPC contract of new crude oil storage tanks, switching manifolds and export pumps along wit
Slide 27: Address: of
Address: 27 of 41 Balmumcu Mah., Zincirlikuyu Yolu No: 10 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Besiktas, Istanbul, Turkey 34349 Web: www.enka.com E-mail: corporate.finance@enka.com
Slide 28: Real Estate Portfolio
Real Estate Portfolio TYPE SIZE (NLA) OCCUPANCY RATE Class A Office Area 368.000 m2 79% USD 650/m2/year Retail Area 280.000 m2 95% USD 375/m2/year 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
Slide 29: Investments in Russia
Investments in Russia 1 1 Leningradsky 2 Kuntsevo Plaza 3 3 Maryina Roshcha 12 15 4 Kashirskaya 2 9 5 Sevastopolsky 4 13-14 6 6 Vernadskogo 5 7 Belyaevo 7 8 Podolsk 9 Orekhovo-Zuyevo 10 Sergiev Posad 11 Pionerski (St. Petersburg) 12 Naberezhnaya Tower 13 Paveletskaya 14 Moskva Krasnye Holmy 15 MosEN
Slide 30: Real Estate Revenue & EBITDA
Real Estate Revenue & EBITDA YEAR RENTAL REVENUE EBITDA EBITDA MARGIN 2018 1Q 79 47 59,5% 2017 319 193 60,5% 2016 319 223 69,9% 2015 382 267 69,9% 2014 485 337 69,6% 2013 478 346 72,5% 2012 442 308 69,7% All figures given above are in Million US dollars Address: 30 of 41 Balmumcu Mah., Zincirlikuyu
Slide 31: Real Estate – Some Tenants
Real Estate – Some Tenants Address: 31 of 41 Balmumcu Mah., Zincirlikuyu Yolu No: 10 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Besiktas, Istanbul, Turkey 34349 Web: www.enka.com E-mail: corporate.finance@enka.com
Slide 32: Real Estate New and Further Investments
Real Estate New and Further Investments Investment projects of ENKA TC (Fully owned by ENKA) Kashirskaya Maryina Roshcha 1 Shopping Center 2 Shopping Center Existing shopping center has been demolished in 4Q 2015 Existing shopping center will be demolished in 2018 Total Investment: USD 210 Million T
Slide 33: Address: of
Address: 33 of 41 Balmumcu Mah., Zincirlikuyu Yolu No: 10 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Besiktas, Istanbul, Turkey 34349 Web: www.enka.com E-mail: corporate.finance@enka.com
Slide 34: Power Generation Financial Overview
Power Generation Financial Overview Operator ownership : 100% ENKA Debt-to-equity ratio : 75/25 Export Credit Agency (ECA) and OPIC facilities Fully covered political and commercial risk is approximately 94% Exhaustive due diligence over 2 years by ECA and OPIC No local currency risk : Payments calc
Slide 35: Power Generation Financial Overview
Power Generation Financial Overview 3 gas-fired combined cycle power plants (total 3.854 MW) Gebze 1.554 MW Adapazarı 777 MW Izmir 1.523 MW Annual generation is 32 Billion Kwh net and the annual natural gas consumption is around 6.5 Billion CBM, Capability of meeting 11% of Turkey’s total demand, si
Slide 36: Power Generation Financial Overview
Power Generation Financial Overview Botaş Turkish Pipeline Corporation, a Turkish State Entity, supplies natural gas under 16- year-term contract (will expire at the end of 2018) Turkish Undersecreteriat of Treasury guarantees back obligations of TETAŞ and BOTAŞ, Very competitive tariffs - 4.2 Cent/
Slide 37: Power Generation Project Rationale
Power Generation Project Rationale Strong and growing projected demand for electricity (8% p.a. at that time) Existing and forecasted energy shortage at that time, Improving economic situation in Turkey. Proximity to main electricity load centers Will reduce transmission losses from plants in East (
Slide 38: Power Generation Debt Funding
Power Generation Debt Funding COMMITTED AMOUNTS TOTAL PROJECT FINANCE TOTAL Total Debt (75%) 1,530 US EXIM, USA 860 Total Equity (25%) 510 OPIC, USD 300 Total Project Cost 2,040 HERMES, GERMANY 185 OND, BELGIUM 125 OTHER BANKS 60 TOTAL 1,530 All outstanding project finance loans have been fully paid
Slide 39: Turkey's Energy Consumption in 2017
Turkey’s Energy Consumption in 2017 SOURCES Million Kwh % Natural Gas 109,869 37.9 Coal 93,406 32.2 Hydro 58,230 20.1 Wind 17,800 6.1 Geothermal 5,294 1.8 Others 6,163 2.1 International (Net) (561) (0.2) Total Consumption 290,201 100 Source: Energy Exchange Istanbul (www.epias.com.tr) Address: 39 of
Slide 40: Turkey's Energy Demand
Turkey’s Energy Demand Billion KWH Change 12% 275 10% 8% 225 6% 4% 175 2% 0% 125 -2% 128 127 133 141 150 161 175 190 198 194 210 230 242 246 255 264 275 290 75 -4% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Address: 40 of 41 Balmumcu Mah., Zincirlikuyu
Slide 41: ENKA İnşaat ve Sanayi A.Ş.
İNŞAAT VE SANAYİ A.Ş. Balmumcu Mah., Zincirlikuyu Yolu No: 10, 34349 Beşiktaş / İstanbul Tel: +90 (212) 376 10 00 (pbx) Fax: +90 (212) 272 88 69
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