Enka Insaat Ve Sanayi A.s. · BIST:ENKAI
Enka Insaat Ve Sanayi A.s — Q2 2021 Earnings Presentation
47 slides from Enka Insaat Ve Sanayi A.s's earnings presentation, 2021
Slide 1: 2nd Quarter
2nd Quarter
Slide 2: Introduction
Introduction EXPERIENCE RELIABILITY EVALUATION 64 Years of construction 547 projects in 46 countries have been Traded publicly on experience worldwide completed or under construction with Borsa Istanbul (BIST) historical value of USD 51 Billion with a market cap of USD 6,0 Billion (@ 30.06.2021) SYN
Slide 3: Milestones [1957-1976]
Milestones [1957-1976] Founded Focused on The Partnership as a limited liability design, engineering and was transformed into a joint partnership as Şarık Tara & construction activities of stock company as Sadi Gülçelik Enka Limited industrial plants, buildings ENKA İnşaat ve Sanayi A.Ş. Şirketi and
Slide 4: Milestones [1977-1996]
Milestones [1977-1996] Foundation First Natural Gas Outstanding ENKA Sports, education and combined cycle power achievements with fast- culture foundation and Sadi plant in Turkey 600 MW track projects in Libya, Gülçelik sports center Trakya CCCP Russia and Former establishments Soviet Union Countri
Slide 5: Milestones [1997-2021]
Milestones [1997-2021] 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 [1997-2021]
Milestones [1997-2021] Gas Fired CCPP EPC in Russia Airport 790 MW Rijnmond Natural ENKA as a main contractor Completion of Gas Fired CCPP has been has been awarded 400 MW Sheremetyevo Airport completed in 22 months by Yajva State District Power Terminal 3 in Moscow, the ENKA Bechtel Joint Plant EPC
Slide 7: Milestones [1997-2021]
Milestones [1997-2021] Iraq Re-Entry Northern Iraq Oil & Gas ENKA’s re-entry into Iraq oil First contract awarded in Northern Al-Najybia 500 MW gas & gas market by winning the Iraq after two decades turbine power plant and contract for mechanical, Rumaila Crude Oil Pumping electrical and Erbil Combi
Slide 8: Milestones [1997-2021]
Milestones [1997-2021] Caucasus Pipeline Motorway Projects Power Plants A contract related to South After successfully completing EPC contracts awarded; Caucasus Pipeline Expansion the Route 7 and the Route 6 Simple Cycle Power Plant (SCPX) has been awarded to Motorway Projects in Kosovo a Project a
Slide 9: Mission, Vision and Values
Mission, Vision and Values Mission Vision 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 project projects on schedule for our customers constr
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
Sustainability Doing Good Business Caring for Employees In carrying out its work honestly, in time and to the ENKA protects the health and ensures the safety of highest quality, ENKA ensures that a responsible and its employees and subcontractors. ethical approach is adopted at every level. ENKA wor
Slide 12: Sustainability
Sustainability Developing Communities Reducing Environmental Impact ENKA contributes to the welfare and development of ENKA measures and reports on its environmental local communities through its infrastructure and impact, sets targets and carries out improvements. superstructure investments. ENKA u
Slide 13: Shareholder Structure
Shareholder Structure 2,47% 5,87% 9,05% 31,44% 51,17% Address: Balmumcu Mah., Zincirlikuyu Yolu No: 10 Besiktas, Istanbul, Turkey 34349 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Web: www.enka.com E-mail: corporate.finance@enka.com 13 of 46
Slide 14: Consolidated Financial Highlights
Consolidated Financial Highlights 2Q 2021 2020 2019 2018 2017 TOTAL ASSETS 8.807 8.454 8.318 7.796 8.031 TOTAL EQUITY 6.738 6.694 6.568 6.103 6.207 CASH & MARKETABLE SECURITIES 4.776 4.406 3.960 3.252 3.479 REVENUE 1.048 1.659 1.893 2.881 2.900 EBITDA 336 386 436 757 745 EBITDA MARGIN 32,1% 23,3% 23
Slide 15: Revenues by Business Lines
Revenues by Business Lines 2Q 2021 2020 2019 2018 2017 USD % USD % USD % USD % USD % CONSTRUCTION 722 68,9 1.263 76,1 1.147 60,6 1.011 35,1 1.195 41,2 POWER GENERATION 63 6,0 0 0,0 324 17,1 1.474 51,2 1.337 46,1 REAL ESTATE 149 14,2 289 17,4 346 18,3 329 11,4 319 11,0 TRADE 143 13,6 154 9,3 119 6,3
Slide 16: EBITDA by Business Lines
EBITDA by Business Lines 2Q 2021 2020 2019 2018 USD % MRG USD % MRG USD % MRG USD % MRG CONSTRUCTION 222 66 31 201 52 16 142 33 12 209 28 21 POWER GENERATION (1) (0) (2) (17) (4) - 68 16 21 326 43 22 REAL ESTATE 93 28 62 187 48 65 213 49 62 204 27 62 TRADE 23 7 16 16 4 10 10 2 8 17 2 10 ELIMINATION
Slide 17: Share Capital Increases (Shares Dividend-Bonus Issue)
Share Capital Increases (Shares Dividend-Bonus Issue) PREVIOUS SHARE INCREASED SHARE DATE INCREASE INCREASE (%) CAPITAL 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 27.04.20
Slide 18: Dividend Payments
Dividend Payments GROSS CASH DIVIDEND D.P.F.S.* YEAR DATE NET RATE RATE TL USD TL USD 27.09.2017 3,59% 3,05% 165 46,2 0 0 2017 13.12.2017 4,00% 3,40% 184 48,0 0 0 17.04.2018 12,00% 10,91% 552 134,8 32,3 7,89 2017 TOTAL 32,3 7,89 12.12.2018 4,00% 3,40% 200 37,3 0 0 2018 17.04.2019 15,00% 13,67% 750 1
Slide 19: Share Buy Back
Share Buy Back Decision Taken Share Amount to be Bought Number of Total Shares Percentage July 2016 8,4 Million 4,2 Billion 0,20% July 2017 4,6 Million 4,6 Billion 0,10% August 2017 4,6 Million 4,6 Billion 0,10% January 2018 4,6 Million 4,6 Billion 0,10% May 2018 4,6 Million 4,6 Billion 0,10% June 2
Slide 20: Work Force
Work Force ENKA TURKEY Technical : 414 Administrative : 134 ENKA ABROAD Workers : 71 ENKA Abroad Total : 619 Technical : 735 Administrative : 452 Workers : 14.287 Total : 15.474 SUBSIDIARIES TURKEY Technical : 642 Administrative : 480 SUBSIDIARIES Workers : 1.832 Total : 2.954 ABROAD Technical : 32
Slide 21: 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 22: Awards & Achievements
Awards & Achievements RISK MANAGEMENT DEVELOPMENT Turkish Power Company ENKA POWER Kuntsevo Plaza, has been awarded in has world class risk management article three categories of the prestigious which praises ENKA's commitments and awards in 2016: Best Retail Architecture achievements in protecting
Slide 23: Address:
Address: Balmumcu Mah., Zincirlikuyu Yolu No: 10 Besiktas, Istanbul, Turkey 34349 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Web: www.enka.com E-mail: corporate.finance@enka.com 23 of 46
Slide 24: 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 25: Backlog as of June 30th, 2021
Backlog as of June 30th, 2021 Country Backlog % Russia 939 26.2 Serbia 541 15.1 Kazakhstan 477 13.3 Libya 379 10.6 Special Projects 355 9.9 Bahamas 165 4.6 Turkey 92 2.6 Iraq 77 2.2 Sweden 37 1.0 Mexico 35 1.0 Others 484 13.5 Total 3.581 100 All figures given above are in Million US Dollars Address:
Slide 26: 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 505 Million (1st Phases) ENKA, with its partner General Electric, will
Slide 27: Selected Projects Under Construction
Selected Projects Under Construction PJSC Nizhnekamskneftekhim 495 MW CCGT-TPP Job Owner : PJSC Nizhnekamskneftekhim, a member of TAIF Group Location : Nizhnekamsk, Republic of Tatarstan - Russia Siemens signed a contract for building 495 MW natural gas fired combined cycle power plant on a turnkey
Slide 28: Selected Projects Under Construction
Selected 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, electri
Slide 29: Selected Projects Under Construction
Selected Projects Under Construction Kazan 250 MW Combined Cycle Power Plant Kazan, Tatarstan, Russian Federation Job owner : PJSC Kazanorgsintez (Member of the TAIF Group) In October 2019, Siemens signed a contract with PJSC Kazanorgsintez, a member of the TAIF Group, for the delivery, installation
Slide 30: Selected Projects Under Construction
Selected 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 S
Slide 31: Selected Projects Under Construction
Selected Projects Under Construction St. Petersburg High-Technological Multifunctional Medical Complex (HMMC) Russian Federation ENKA commenced work in 2019 on design and construction of a High-Technology Multifunctional Medical Complex (HMMC) Project in St. Petersburg in the Russian Federation. The
Slide 32: Selected Projects Under Construction
Selected 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 shi
Slide 33: Selected Projects Under Construction
Selected Projects Under Construction Zainskaya 858 MW Combined Cycle Power Plant - Zainsk / Tatarstan, Russian Federation Job owner : Joint Stock Company “Tatenergo” The scope of work awarded to ENKA consists of design and survey works, construction and installation works, commissioning works, compr
Slide 34: Selected Projects Under Construction
Selected Projects Under Construction Tripoli West 671 MW & Misurata 650 MW Simple Cycle Power Plants - Libya Job owner : General Electricity Company of Libya For meeting the growing electricity demand of Libya, ENKA and its consortium partner Siemens signed contracts with General Electricity Company
Slide 35: Address:
Address: Balmumcu Mah., Zincirlikuyu Yolu No: 10 Besiktas, Istanbul, Turkey 34349 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Web: www.enka.com E-mail: corporate.finance@enka.com 35 of 46
Slide 36: Real Estate Portfolio
Real Estate Portfolio TYPE SIZE (NLA) OCCUPANCY RATE Class A Office Area * 368.000 m2 90% USD 570/m2/year Retail Area 364.000 m2 93% USD 275/m2/year 5 Star Hotel 235 Rooms ** ** All assets are located in Moscow, except 1 shopping center which is located in St.Petersburg. * In 2020, a building of 23.
Slide 37: Address:
Address: Balmumcu Mah., Zincirlikuyu Yolu No: 10 Besiktas, Istanbul, Turkey 34349 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Web: www.enka.com E-mail: corporate.finance@enka.com 37 of 46
Slide 38: Real Estate Revenue & EBITDA
Real Estate Revenue & EBITDA YEAR RENTAL REVENUE EBITDA EBITDA MARGIN 2Q 2021 149 93 62,4% 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% 2015 382 267 69,9% All figures given above are in Million US dollars Address: Balmumcu Mah., Zincirlikuyu Yolu No:
Slide 39: Real Estate – Some Tenants
Real Estate – Some Tenants Address: Balmumcu Mah., Zincirlikuyu Yolu No: 10 Besiktas, Istanbul, Turkey 34349 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Web: www.enka.com E-mail: corporate.finance@enka.com 39 of 46
Slide 40: Real Estate New Investments
Real Estate New Investments Investment projects of ENKA TC (Fully owned by ENKA) 1 Total Investment: USD 484 Million Total Area: 245.000 m2, Net Leasable Area: 90.000 m2 29.000 m2 Office and 61.000 m2 Retail Completion: 2015 2 Total Investment: USD 232 Million Total Area: 196.750 m2, Net Leasable Ar
Slide 41: Real Estate Further Investments
Real Estate Further Investments 1 Existing shopping center is planned to be demolished. Total Investment: USD 335 Million Total Area: 245.000 m2, Net Leasable Area: 105.000 m2 2 3 A-Class offices including Multi-storey Car Park Project A-Class offices including Multi-storey Car Park Project Total In
Slide 42: Address:
Address: Balmumcu Mah., Zincirlikuyu Yolu No: 10 Besiktas, Istanbul, Turkey 34349 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Web: www.enka.com E-mail: corporate.finance@enka.com 42 of 46
Slide 43: Power Generation Overview
Power Generation 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, since Turkey
Slide 44: 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 45: Turkey’s Energy Production
Turkey’s Energy Production 2019 2020 SOURCES Million Kwh % Million Kwh % Coal 112,856 39.0 106,265 36.5 Hydro 88,571 30.6 77,834 26.8 Natural Gas 54,817 18.9 68,073 23.4 Wind 21,491 7.4 24,487 8.4 Geothermal 8,229 2.8 9,316 3.2 Others 4,191 1.5 4,800 1.7 International (Net) (558) (0.2) (547) (0.2) T
Slide 46: Turkey’s Energy Demand
Turkey’s Energy Demand BILLON KWH CHANGE 12% 275 10% 8% 225 6% 4% 175 2% 0% 125 -2% 127 133 141 150 161 175 190 198 194 210 230 242 246 255 264 275 290 292 290 291 75 -4% Address: Balmumcu Mah., Zincirlikuyu Yolu No: 10 Besiktas, Istanbul, Turkey 34349 Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (21
Slide 47: 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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