Enka Insaat Ve Sanayi A.s. · BIST:ENKAI
Enka Insaat Ve Sanayi A.s — Q3 2022 Earnings Presentation
47 slides from Enka Insaat Ve Sanayi A.s's earnings presentation, 2022
Slide 1: Q3 2022 Presentation
ENGINEERING FOR A BETTER FUTURE Q3 2022 PRESENTATION 1 / 47
Slide 2: Introduction
Introduction EXPERIENCE 65 Years of construction experience worldwide RELIABILITY 559 projects in 48 countries have been completed or under construction with historical value of USD 55 Billion EVALUATION Traded publicly on Borsa Istanbul (BIST) with a market cap of USD 5,5 Billion (@ 30.09.2022) SYN
Slide 3: Milestones [1957-1976]
Milestones [1957-1976] Founded First International as a limited liability partnership as Şarık Tara Contract Benghazi Cement Factory and & Sadi Gülçelik Enka Limited Şirketi then 4 more cement factory projects in Libya Focused on First Power Plant design, engineering and construction activities 150
Slide 4: Milestones [1977-1996]
Milestones [1977-1996] Foundation Real Estate ENKA Sports, education and culture Establishment of development companies foundation and Sadi Gülçelik sports center in Moscow, Russia establishments First Natural Gas Oil Fields combined cycle power plant in Turkey 600 Primary oil services contracts in
Slide 5: Milestones [1997-2006]
Milestones [1997-2006] Retail Business Gas Fired CCPP Development of shopping malls and retail 790 MW Rijnmond Natural Gas Fired business in Moscow, Russia CCPP has been completed in 22 months by the ENKA Bechtel Joint Venture in the Netherlands Power Generation World Record Power Generation ENKA se
Slide 6: Milestones [2007-2016]
Milestones [2007-2016] Iraq Re-Entry Caucasus Pipeline ENKA’s re-entry into Iraq oil & gas market by A contract related to South Caucasus winning the contract for mechanical, electrical Pipeline Expansion (SCPX) has been and instrumentation works of early production awarded to Bechtel-ENKA JV facili
Slide 7: Milestones [2017-2022]
Milestones [2017-2022] Motorway Projects Aerospace After successfully completing the Route 7 and Cimtas Ningbo is Aerospace Standard the Route 6 Motorways in Kosovo a new 9100D certified. motorway project; Morava Corridor, Serbia has been awarded to Bechtel-ENKA JV. Cimtas Ningbo is amongst the firs
Slide 8: Milestones [2017-2022]
Milestones [2017-2022] Germany Excellence The first heat and power plant project, Mitsubishi Power Americas has awarded Dradenau Combined Heat and Power Cimtas Ningbo with the “Excellence in Plant, undertaken in Germany. Performance Award” for its high performance in 2020. England Bahamas ENKA UK Co
Slide 9: Mission Vision 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 project projects on schedule for our customer
Slide 10: Sustainability
SUSTAINABILITY PRIORITY STRATEGY Doing Good ENKA, which operates in different sectors such as engineering and construction, energy, Business real estate and trade in many different geographies, has made a commitment to serve sustainable development in all its operations. Caring For The approach whic
Slide 11: Doing Good Business
Doing Good Business In carrying out its work honestly, in time and to the highest quality, ENKA ensures that a responsible and ethical approach is adopted at every level. ENKA broadens the scope of its risk management so as to address economic, environmental and social issues in an integrated manner
Slide 12: Caring for Employees
Caring for Employees ENKA protects the health and ensures the safety of its employees and subcontractors. ENKA works to increase employee loyalty and to promote more active involvement of employees in decision-making mechanisms. ENKA invests in training and development of its employees and provides
Slide 13: Developing Communities
Developing Communities ENKA contributes to the welfare and development of local communities through its infrastructure and superstructure investments. ENKA supports the development of the engineering profession in all the regions of the world where it is active. By spreading sustainability awareness
Slide 14: Reducing Environmental Impact
Reducing Environmental Impact ENKA measures and reports on its environmental impact, sets targets and carries out improvements. ENKA undertakes improvements to reduce its carbon and water footprint and to ensure energy efficiency. ENKA develops and implements environment-friendly building solutions.
Slide 15: Shareholding Structure
SHAREHOLDING STRUCTURE 4 5 3 No Shareholder Shares in Total 1 TARA FAMILY 51,43% 1 2 GÜLÇELİK FAMILY 31,44% 2 3 FREE FLOAT & OTHERS 8,79% 4 ENKA FOUNDATION 5,87% 5 ENKA TREASURY STOCK 2,47% As of 25 March 2022 15 / 47
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS 3Q 2022 2021 2020 2019 2018 TOTAL ASSETS 8.428 9.102 8.454 8.318 7.796 TOTAL EQUITY 6.255 6.675 6.694 6.568 6.103 CASH & MARKETABLE SECURITIES 4.371 5.265 4.406 3.960 3.252 REVENUE 2.786 2.859 1.659 1.893 2.881 EBITDA 548 686 386 436 757 EBITDA MARGIN 19,7% 24,0% 23,3% 23,1% 26,
Slide 17: Revenues by Business Lines
REVENUES BY BUSINESS LINES 3Q 2022 2021 2020 2019 2018 USD % USD % USD % USD % USD % CONSTRUCTION 1.388 49,8 1.569 54,9 1.263 76,1 1.147 60,6 1.011 35,1 POWER GENERATION 1.016 36,5 797 27,9 0 0,0 324 17,1 1.474 51,2 REAL ESTATE 263 9,4 304 10,6 289 17,4 346 18,3 329 11,4 TRADE 177 6,4 252 8,8 154 9,
Slide 18: EBITDA by Business Lines
EBITDA BY BUSINESS LINES 3Q 2022 2021 2020 2019 USD % MRG USD % MRG USD % MRG USD % MRG CONSTRUCTION 356 65 26 385 56 25 201 52 16 142 33 12 POWER GENERATION 85 15 8 67 10 8 (17) (4) - 68 16 21 REAL ESTATE 70 13 27 194 28 64 187 48 65 213 49 62 TRADE 37 7 21 40 6 16 16 4 10 10 2 8 ELIMINATION 0 0 0
Slide 19: Share Capital Increases
SHARE CAPITAL INCREASES 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 27.04.2017 4.200 400 9,52 4.600 24.05.
Slide 20: Dividend Payments
DIVIDEND PAYMENTS YEAR DATE GROSS CASH DIVIDEND D.P.F.S.* NET RATE RATE TL USD TL USD 2021 05.01.2022 20,00% 18,00% 1,120 84,9 0 0 13.04.2022 50,00% 45,00% 2,800 192,3 61,0 4,19 2021 TOTAL 3,920 277,2 61,0 4,19 2020 13.04.2021 35,71% 30,36% 2,000 244,9 41,9 5,15 2020 TOTAL 2,000 244,9 41,9 5,15 13.1
Slide 21: Share Buyback
SHARE BUYBACK Share Amount Decision Taken Action Number of Total Shares Percentage Bought 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 22: Achievements & Awards
ACHIEVEMENTS & AWARDS YAJVA ADMIRED COMPANY ENKA’s 411 MW CCPP Yajva State District Power Plant EPC Project "Most Admired Construction Company of Turkey awards" for the years has been awarded “the Best Project in the Power/Industrial Category” in 2005 - 2012 by CAPITAL, a business and economics maga
Slide 23: Achievements & Awards
ACHIEVEMENTS & AWARDS RISK MANAGEMENT DEVELOPMENT Turkish Power Company ENKA POWER has world class risk Kuntsevo Plaza, has been awarded in three categories of the management article which praises ENKA's commitments and prestigious awards in 2016: Best Retail Architecture Russia, Best Retail achieve
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
BACKLOG Country Russia Special Projects Backlog 878 662 % 24,3 18,4 United Kingdom 246 6,8 Kazakhstan 245 6,8 Germany 187 5,2 USA 136 3,8 Finland 68 1,9 The Bahamas 61 1,7 The Netherlands 60 1,7 Mexico 41 1,1 Turkiye 37 1,0 Libya 37 1,0 Others * 948 26,3 Total 3.606 100,0 * The group «Others» consis
Slide 26: Under Construction: Tengiz, Kazakhstan
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 27: Under Construction: Kazan Power Plant
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 28: Under Construction: Morava Corridor Motorway
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 29: Under Construction: St. Petersburg Medical Complex
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 30: Under Construction: Nassau, Bahamas
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 31: Under Construction: Libya Power Plants
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 32: Under Construction: Hinkley Point C
SELECTED 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 contr
Slide 33: Under Construction: Dradenau CHP Plant
SELECTED 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 cap
Slide 34: Under Construction: Yandex Headquarters
SELECTED PROJECTS UNDER CONSTRUCTION YANDEX Headquarters - Russia Job owner : Yandex LLC On December 13, 2021, ENKA signed a contract for the construction an innovative new headquarters for Yandex, the global technology leader, in the Gagarinsky District of Moscow, the Russian Federation. A new proj
Slide 35: 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 36: Engineering Fabrication
ENGINEERING FABRICATION 36 / 47
Slide 37: 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 ENGINEERING the field of geotechnical engineering both in Turkey and abroad. De
Slide 38: Real Estate
REAL ESTATE TYPE SIZE (NLA) OCCUPANCY RATE Class A Office Area 388.000 m2 84% USD 600/m2/year Retail Area 365.000 m2 91% 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. * Occupancy and rate of rooms of the hotel
Slide 39: Real Estate
REAL ESTATE OFFICE ( 388.000 m2 ) 12 Naberezhnaya Tower 13 Paveletskaya 14 Moskva Krasnye Holmy 1 15 MosENKA 16 Ochenovski Naberejnaya 3 12 15 RETAIL ( 365.000 m2 ) 2 9 16 1 Leningradsky 4 13-14 6 2 Kuntsevo Plaza 5 3 Maryina Roshcha 7 4 Kashirskaya 5 Sevastopolsky 6 Vernadskogo 7 Belyaevo 8 Podolsk
Slide 40: Real Estate EBITDA
REAL ESTATE EBITDA YEAR RENTAL REVENUE EBITDA EBITDA MARGIN 3Q 2022 263 70 26,6% 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 40 / 47
Slide 41: Some Tenants
SOME TENANTS 41 / 47 REAL ESTATE
Slide 42: Real Estate Completed Investments
COMPLETED INVESTMENTS REAL ESTATE Kuntsevo Multifunctional 1 Trade & Business Center 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 Kashirskaya Plaza 2 Multifunctional Trade Center Total Investment: USD 23
Slide 43: 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 44: Power Generation
POWER GENERATION COMMITTED PROJECT FINANCE TOTAL TOTAL AMOUNTS US EXIM, USA 860 Total Debt (75%) 1.530 OPIC, USD 300 Total Equity (25%) 510 HERMES, GERMANY 185 Total Project Cost 2.040 OND, BELGIUM 125 OTHER BANKS 60 TOTAL 1.530 All outstanding project finance loans have been fully paid back in 2013
Slide 45: Power Generation
POWER GENERATION 2020 2021 SOURCES Million Kwh % Million Kwh % Coal 106,265 36.5 104,115 33.0 Hydro 77,834 26.8 55,473 17.6 Natural Gas 68,073 23.4 107,340 34.0 Wind 24,487 8.4 30,901 9.8 Geothermal 9,316 3.2 10,105 3.2 Others 4,800 1.7 7,786 2.5 International (Net) (547) (0.2) (1,773) (0.6) Total C
Slide 46: Power Generation
diM@a m za m > 4 O za ENKA BILLON KWH ===CHANGE 275 225 175 125 133 141 150 161 175 190 198 194 210 230 242 246 255 264 275 290 292 290 291
Slide 47: 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 e-mail: enka@enka.com web: https://www.enka.com 47 / 47
ENKA İnşaat ve Sanayi A.Ş. — Q3 2022 Earnings Presentation on 6ix