Enka Insaat ve Sanayi A.S. · BIST:ENKAI
Enka Insaat ve Sanayi A.S — Q1 2015 Earnings Presentation
50 slides from Enka Insaat ve Sanayi A.S's earnings presentation, 2015
Slide 1: Engineering for a Better Future 1Q 2015
“Engineering for a Better Future” 1Q 2015 1
Slide 2: Introduction
Introduction 58 Years of Construction Experience Worldwide A Group of Companies Composed of More Than 50 Subsidiaries Operating in 6 Major Geographical Areas: CIS, Asia, Middle East, Europe, Africa & Turkey 476 Projects in 45 Countries have been Completed or Under Construction with Historical
Slide 3: Milestones of ENKA
Milestones of ENKA 1957 • Founded as a Limited Liability Partnership as Şarık Tara & Sadi Gülçelik ENKA Limited Şirketi 1962 • Focused on Design, Engineering and Construction Activities of Industrial Plants, Buildings and Infrastructure 1967 • The Partnership was Transformed into a Joint Stock Compa
Slide 4: Milestones of ENKA
Milestones of ENKA 1983 • ENKA Sports, Education and Culture Foundation and Sadi Gülçelik Sports Center Establishments 1984 • First Natural Gas Combined Cycle Power Plant in Turkey 600 MW Trakya CCCP 1986 • Multinational Joint Ventures • Outstanding Achievements with Fast-Track Projects in Libya, Ru
Slide 5: Milestones of ENKA
Milestones of ENKA 2000-2001 • Power Generation as Independent Power Producer (IPP) • Certified by BSI for ISO 9001 Quality Management System 2002 • Merged with ENKA Holding under ENKA İnşaat ve Sanayi A.Ş. • Certified by BSI for ISO 14001 Environmental Management System and OHSAS 18001 Occupational
Slide 6: Milestones of ENKA
Milestones of ENKA 2008-2009 • ENKA as a Main Contractor has been Awarded 400 MW Yajva State District Power Plant EPC Project in Russia • Completion of Sheremetyevo Airport Terminal 3 in Moscow 2010 • ENKA Set a New World Record For Power Plant Availability (with 99.8% which is 7% Over the Industry
Slide 7: Milestones of ENKA
Milestones of ENKA 2012 • First Contract Awarded in Northern Iraq after Two Decades – Erbil Combined Cycle Power Plant Conversion Project • Al-Najybia 500 MW Gas Turbine Power Plant and Rumaila Crude Oil Pumping Station Projects have been Awarded • Steel Works Contract of Izmit Bay Crossing Suspensi
Slide 8: Vision and Values
Vision and Values The Following Vision and Values Define What is Meant to be ENKA. - Excellence - Innovation - Speed - Safety - Being a Good Member of the Community - Its People “Engineering for a Better Future” 8
Slide 9: Shareholder Structure
Shareholder Structure 31,38% TARA FAMILY 50,15% ENKA FOUNDATION 12,60% FREE FLOAT 5,87% GÜLÇELİK FAMILY As of March 27, 2015 “Engineering for a Better Future” 9
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights ( Million USD ) 2015 (1Q) 2014 2013 2012 TOTAL ASSETS 7.767 7.813 8.471 8.238 TOTAL EQUITY 5.207 5.157 5.597 5.099 CASH & MARKETABLE SECURITIES 3.058 2.990 2.752 2.707 REVENUE 1.281 5.821 6.547 5.746 EBITDA 209 827 1.031 704 EBITDA MARGIN % 16,3 14,2 15,8 11,0 NET P
Slide 11: Revenues by Business Lines
Revenues by Business Lines ( Million USD ) 2015 (1Q) 2014 2013 2012 USD % USD % USD % USD % CONSTRUCTION 385 30,1 2.139 36,8 2.550 38,9 1.384 24,1 POWER GENERATION 761 59,4 3.159 54,3 3.284 50,2 3.653 63,6 REAL ESTATE 108 8,5 485 8,3 478 7,3 442 7,7 TRADE 57 4,4 302 5,1 447 6,8 395 6,9 ELIMINATION (
Slide 12: EBITDA by Business Lines
EBITDA by Business Lines 2015 (1Q) 2014 2013 2012 ( Million USD ) USD % Margin USD % Margin USD % Margin USD % Margin CONSTRUCTION 41 20 11 196 24 9 357 35 15 119 17 9 POWER 84 41 11 260 31 8 273 27 8 267 38 7 GENERATION REAL ESTATE 77 37 71 337 41 70 346 34 73 287 41 65 TRADE 5 3 9 27 3 9 48 5 11 2
Slide 13: Share Capital Increases and Dividends
Share Capital Increases and Dividends (Million Turkish Liras) Previous Share Increased Share Date Increase Increase (%) Capital Capital 25.05.2010 1.800 400 22,22% 2.200 02.06.2011 2.200 300 13,64% 2.500 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%
Slide 14: Top Management
Top Management Board of Directors M. Sinan Tara Chairman of the Board Haluk Gerçek Vice Chairman of Board Erdoğan Turgut Member of Board (Non-executive Member) E. Melih Araz Member of Board (Non-executive & Independent Member) V. Ergin İmre Member of Board (Non-executive & Independent Member) Execut
Slide 15: Work Force
Work Force Technical Administrative As of March 2015 Workers TOTAL Staff Staff ENKA Istanbul Head 294 108 74 476 Quarters ENKA Subsidiaries in 946 473 1.767 3.186 Turkey ENKA Abroad 739 353 14.965 16.057 ENKA Subsidiaries 91 35 1.052 1.178 Abroad TOTAL 2.070 969 17.858 20.897 “Engineering for a Bett
Slide 16: Engineering & Construction
Engineering & Construction Specifically in Oil & Gas and Petrochemical Industry, ENKA Provides Engineering, Fabrication Construction, Commissioning and Start Up Services for Major International Clients Such as; Exxon Mobil, Shell, Chevron, Lukoil etc. ENKA has also Solid Relations with Leading OEMS
Slide 17: Awards
Awards ENKA’s 411MWe CCPP Yajva State District Power Plant EPC Project has been Awarded “The Best Project in the Power/Industrial category” in 2013 Global Best Projects Competition of ENR (Engineering News-Record) ENKA’s Kosovo Motorway EPC Project (Sections 1, 2, 3 & 4a) has been Awarded “The Bes
Slide 18: Awards
Awards ”Most Admired Construction Company of Turkey Awards” for the Years 2005 - 2012 by Capital, a Business and Economics Magazine In 2011, ENKA’s Adapazari Power Plant has been Selected as the Power Plant of the Year with an Availability of 99.8 % by the Power Magazine In 2011, ENKA’s Insurer F
Slide 19: Certificates
Certificates ISO 9001: 2008 ISO 14001: 2004 OHSAS 18001: 2007 QUALITY MANAGEMENT SYSTEM ENVIRONMENTAL MANAGEMENT SYSTEM HEALTH & SAFETY MANAGEMENT SYSTEM ASME S ASME A ASME U ASME U2 POWER BOILERS POWER BOILER ASSEMBLIES PRESSURE VESSELS ALTERNATIVE RULES FOR PRESSURE VESSELS “Engineering for a Bett
Slide 20: Certificates
Certificates ASME Nuclear NPT STAMP ASME Nuclear NA STAMP ASME Nuclear NS STAMP EnBW KTA 1401 's Nuclear Certificates “Engineering for a Better Future” 20
Slide 21: Engineering & Construction
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Slide 22: Backlog as of 31.03.2015
Backlog as of 31.03.2015 COUNTRY (Million USD) % IRAQ 1.002 41,2 US EMBASSY PROJECTS 432 17,8 KOSOVO 284 11,7 GEORGIA 281 11,6 OMAN 168 6,9 KAZAKHSTAN 109 4,5 TURKEY 53 2,2 UNITED STATES 28 1,2 RUSSIA 14 0,6 OTHERS 60 2,5 TOTAL 2.430 100 “Engineering for a Better Future” 22
Slide 23: Selected Projects Under Construction
Selected Projects Under Construction Erbil Combined Cycle Power Plant Project – Erbil, Iraq Sulaymaniyah Combined Cycle Power Plant Project – Sulaymaniyah, Iraq Duhok Combined Cycle Power Plant Project – Duhok, Iraq Besmaya Combined Cycle Power Plant Project – Besmaya, Iraq Bazian Simple Cycle Power
Slide 24: Selected Projects Under Construction
Selected Projects Under Construction Combined Cycle Power Plant Projects – Erbil, Sulaymaniyah and Duhok, Iraq Job Owner: MGH - Mass Group Holding Ltd. Scope: To Convert its Independent Power Projects (IPP) from Simple-Cycle to Combined-Cycle Technology. The Project is on an EPC basis. Erbil Gas Pow
Slide 25: Selected Projects Under Construction
Selected Projects Under Construction Besmaya Combined Cycle Power Plant Project Contract Price : USD 555 Million 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, Loca
Slide 26: Selected Projects Under Construction
Selected Projects Under Construction Bazian Simple Cycle Power Plant Project Contract Price : USD 240 Million Job Owner : Qaiwan Group Location : Bazian, Sulaymaniyah – Iraq ENKA is awarded to Build the First Phase of Bazian Combined Cycle Power Plant, the Simple Cycle Portion. The Green Field Proje
Slide 27: Selected Projects Under Construction
Selected Projects Under Construction Al Najybia 4x125 MW Gas Turbine Power Plant Project Located in Basra, Iraq Contract Price: USD 237 Million The Project is in the Scope of “Mega Deal Projects” by Ministry of Electricity of Iraq. Engineering, Procurement, Construction, Commissioning and Start-Up o
Slide 28: Selected Projects Under Construction
Selected Projects Under Construction US Embassy Projects - Afghanistan, Russia, the Netherlands, Mauritania, Djibuti and Turkmenistan The Collaboration between ENKA and CADDELL Construction Co. of USA Started in Early 2000’s. Companies Agreed to Jointly Carry Out the Construction of the US Embassy B
Slide 29: 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 600 Million 60-Kilometer Motorway Linking the Capital, Pristina to Neighboring Macedonia. The New Motorway, Route 6, will Connect Kosovo with the Su
Slide 30: Selected Projects Under Construction
Selected Projects Under Construction South Caucasus Pipeline Expansion (SCPX) Project – Georgia Contract Price: USD 542 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 31: Selected Projects Under Construction
Selected Projects Under Construction Development of Muscat International Airport Project (MC3)– Muscat, Sultanate of Oman Consortium of BECHTEL – ENKA Joint Venture with Bahwan Engineering Company The Contract Price : USD 1.8 Billion ( ENKA’s Share = USD 702 Million ) Job Owner : The Ministry of Tra
Slide 32: Selected Projects Under Construction
Selected Projects Under Construction Berezovskaya Coal Fired Power Plant, Mechanical Erection Works Krasnoyarsk, Russia End Customer: OJSC “E.ON Russia” EPC Contractor: Energoproekt ENKA is the Mechanical Erection Works Contractor for the Construction of the 800 MW Berezovskaya Coal Fired Power Plan
Slide 33: Selected Projects Under Construction
Selected Projects Under Construction Crude Shipment Capacity New Tank Farm Project Tengiz, Kazakhstan Job Owner: 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 with
Slide 34: Energy
Slide 35: Real Estate
Real Estate Type Location Size (NLA) Occupancy Rate Class A Office Area Moscow 337.000 m2 90% USD 800/m2/Year Retail Area Moscow** 297.000 m2 89% USD 575/m2/Year 5 Star Hotel Moscow* 235 Rooms * * * Occupancy and Rate of rooms of the Hotel may vary daily. * * 1 out of 11 Shopping Centers is located
Slide 36: Investments in Russia
Sh paagerorste ~~ * = © Annexe Razvika Dates \R Ls Leningradsky 2: Kuntsevo Plaza 3:MaryinaRoscha 4: Kashirskoe 5: Sevastopolsk 6: Vernadskogo fare
Slide 37: Real Estate
Real Estate Rental Revenue EBITDA Year EBITDA Margin Million USD Million USD 2015 (1Q) 108 77 71,0% 2014 485 337 69,5% 2013 478 346 72,5% 2012 442 308 65,0% 2011 407 306 75,1% “Engineering for a Better Future” 37
Slide 38: Real Estate (Some Tenants)
Real Estate (Some Tenants) ACCENTURE IATA MITSUI & CO. SUMITOMO MITSUI BASF IBM NATIONAL OILWELL VARCO STATOIL CHANNEL INGOSTRAKH NESTLE SYMANTEC CITIBANK KPMG NINTENDO TOMMY HILFIGER CLEARY GOTTLIEB LA PRAIRE PFIZER UBS STEEN & HAMILTON LEGO QUALCOMM UNIVERSAL PICTURES E.ON SERVIER RENAISSANCE CAPI
Slide 39: Real Estate: Kuntsevo Multifunctional Complex
Real Estate Kuntsevo Multifunctional Complex Owner : ENKA TC (Fully Owned By ENKA) Total Investment : USD 465 Million The Existing Shopping Center which was Opened In 1997 with a Total Area of 19.400 m2 was Demolished in 2012 The Complex Includes: Shopping Center with a Net Leasable Area of 63.800
Slide 40: Real Estate: Sergiev Posad Shopping Center
Real Estate Sergiev Posad Shopping Center Owner: ENKA TC (Fully Owned By ENKA) Total Investment: USD 59 Million The Complex Includes: Shopping Center with a Net Leasable Area of 25.000 m2 A Car Park of 723 spaces With a Building Area of Approximately 38.000 m2 in Total Started Operation in Aug
Slide 41: Real Estate (New and Further Investment Projects)
Real Estate (New and Further Investment Projects) Investment Projects of ENKA TC (Fully Owned By ENKA) Kashirskaya Shopping Center Existing Shopping Center will be Demolished in 2Q 2015 Total Investment: USD 260 Million Total Area: 173.000 m2, Net Leasable Area: 75.000 m2 Marino Rosha Shopping
Slide 42: Energy
Slide 43: Financial Overview
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 Calculated in USD and Pa
Slide 44: Project Overview
Project 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 12% of Turkey’s Total Demand, since Turkey’s Consum
Slide 45: Project Overview
Project 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/kWh Average Sales Pr
Slide 46: Project Rationale
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 Centres Will Reduce Transmission Losses from Plants in East (Near Domestic Coa
Slide 47: Debt Funding
Debt Funding COMMITTED AMOUNTS TOTAL (Million USD) TOTAL DEBT (75%) 1.530 TOTAL EQUITY (25%) 510 TOTAL PROJECT COST 2.040 PROJECT FINANCE TOTAL (Million USD) US EXIM, USA 860 HERMES, GERMANY 185 OND, BELGIUM 125 OPIC, USA 300 OTHER BANKS 60 TOTAL 1.530 All Outstanding Project Finance Loans have been
Slide 48: Overview of Project Agreements
Overview of Project Agreements NATURAL GAS SALES EPC CONTRACT AGREEMENT BECHTEL BOTAŞ ENKA JV PARTS & SERVICES TREASURY GUARANTIES PROJECT TREASURY AGREEMENT GE COMPANY TETAŞ ENKA SANTRAL BAKIM OPERATIONS & ELECTRICITY SALES MAINTENANCE AGREEMENT AGREEMENT “Engineering for a Better Future” 48
Slide 49: Turkey's Energy Consumption in 2014
Turkey’s Energy Consumption in 2014 SOURCES MILLION KWH % NATURAL GAS + LNG 120,438 47.1 HYDRO 40,396 15.8 COAL 73,086 28.6 WIND, GEO & OTHERS 16,516 6.5 TOTAL PRODUCTION 250,436 98.0 IMPORT 7,805 3.1 EXPORT (2,696) (1.1) TOTAL CONSUMPTION 255,545 100.0 Source: TEIAS “Engineering for a Better Future
Slide 50: Turkey's Energy Demand
Turkey’s Energy Demand 14% 250 12% 10% 200 8% 6% 150 4% 2% 100 0% -2% 95 106 114 119 128 127 133 141 150 161 175 190 198 194 210 230 242 246 255 50 -4% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Billion KWh Change % “Engineering for a Better Future
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