Tekfen Holding Anonim Sirketi · BIST:TKFEN
Tekfen Holding Anonim Sirketi — Tekfen Holding — Investor Presentation (August 2023)
67 slides from Tekfen Holding Anonim Sirketi's investor presentation, August 2023
Slide 1: Tekfen Holding Investor Presentation August 2023
Tekfen Holding Investor Presentation August 2023
Slide 2: Tekfen Group At a glance
Tekfen Group At a glance 1956 Feyyaz Berker, 1970 Foundation of 1981 Toros Fertilizer 2000 Tekfen Real Estate 2007 Partnership with 2012 Sale of Eurobank Nihat Gökyiğit and Tekfen Manufacturing starts production Development Group Eurobank EFG in Tekfen Necati Akçağlılar formed Tekfenbank an engineer
Slide 3: Corporate Governance
Tekfen Group Corporate Governance Ownership structure Share Classes Akçağlılar, Single type of shares (one share one vote) 6,65% Berker, 23,55% Composition of the Board Free Float, 49,74% 4 out of 11 members are independent. Board members to be elected for max. of three years Dividends Gökyiğit, 30%
Slide 4: Tekfen Group At a glance
Tekfen Group At a glance Engineering & Contracting Agricultural Industry Investment Main Operations: Main Operations: Main Operations: ▪ Construction ▪ Fertilizer production & ▪ Venture Capital ▪ Engineering distribution ▪ Petrochemical ▪ Fabrication ▪ Terminal services ▪ Real Estate Investment ▪ Re
Slide 5: Tekfen's Sustainability Vision
Tekfen Group Tekfen’s Sustainability Vision ➢ Tekfen’s sustainability vision is conceptually embodied in the group’s “Bridging Prosperity” motto. The primary goals of all economic activity are to increase social wellbeing and to improve the quality of life of the individuals who make up a society. T
Slide 6: Tekfen's Sustainability Vision
Tekfen Group Tekfen’s Sustainability Vision ➢ Tekfen Holding’s publicly-traded shares are included in the Istanbul Stock Exchange’s BIST 50 index. Owing to the company’s successful corporate governance, environment, and social-welfare performance, Tekfen Holding’s shares have been included in the BI
Slide 7: Human Resources
Tekfen Group Human Resources Number of employees 11.950 10.282 19.180 18.296 18.844 15.514 17.094 16.543 14.295 13.878 1.313 13.234 355 11.950 2022 Year-end Engineering & Contracting 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Agri Industry Investment Total Total Tekfen Holding has a dynamic a
Slide 8: Engineering & Contracting
ENGINEERING & CONTRACTING
Slide 9: Overview
Overview ✓ Founded in 1956 as an engineering and consultancy firm. ✓ One of the largest contracting groups in Turkey. ✓ Main area of specialization is construction projects in the oil and gas industry. ✓ Is among the leading international construction companies in the world and ranks at number 76 am
Slide 10: Engineering & Contracting
Engineering & Contracting Group EPC Turnkey Delivery ➢ EPC (also commissioning, start-up, operational support & training) ➢ EPC-F ➢ EPCM Manufacturing of Turnkey Design & Export Finance Process & Storage Engineering Construction & Procurement Equipment ➢ Engineering ➢ Lump Sum Turnkey ➢ Procurement
Slide 11: Selected International Project Partners
Engineering & Contracting Selected International Project Partners Mitsubishi Corp., ABB, UK Flour, USA Technip, France Japan Air Liquide, General Electric, Parsons Inc., Tecnicas France USA USA Reunidas, Spain ILF Consulting, Toyo Eng., Alstom, France Petrofac, UAE Austria Japan Wood (formerly Uhde
Slide 12: Selected Clients
Engineering & Contracting Selected Clients TURKEY SAUDI ARABIA QATAR AZERBAIJAN KAZAKHSTAN KUWAIT TÜPRAŞ (Turkish ASHGHAL, Petroleum KOC, Kuwait Oil Saudi Aramco Ministry of Public BP Exploration Tengizchevroil Refineries Company Works Corporation) BOTAŞ (Petroleum Ma’aden, Saudi Ministry of Public
Slide 13: Manpower
Engineering & Contracting Manpower Total Manpower: 12,488* TURKEY: 2,410 ABROAD: 10,078 Russia 1.550 Iraq 1 Saudi Arabia 1.102 Qatar 1.446 Kazakhstan 2.490 Morocco 4 Turkmenistan 3 Algeria 2 Azerbaijan 4.071 Kenya 2 * As of 2022-end including subcontractors. 13 Tekfen Group Engineering Chemical Agri
Slide 14: Manpower Structure
Engineering & Contracting Manpower Structure DISIPLINE & DIVISION ENGINEERS 381 3.05% NATIONALITY MANAGEMENT 144 1.15% TURKISH 3,042 24.36% PROCUREMENT 58 0.46% INDIAN 289 2.31% ADMIN 212 1.70% AZERBEIJANI 148 1.19% QA&QC/HSE 200 1.60% NEPALESE 86 0.69% TECHNICIANS 139 1.11% SAUDI 59 0.47% FOREMEN 1
Slide 15: Areas of Expertise
Engineering & Contracting Areas of Expertise BASIC DETAILED PROCUREMENT FABRICATION CONSTRUCTION START UP ENGINEERING* ENGINEERING E E+P E+P+F E+P+C PMS E : Engineering F : Fabrication P : Procurement PMS : Project Management Services C : Construction * In pipelines, tank farms / terminals, motorway
Slide 16: Business Areas
Engineering & Contracting Business Areas Refineries Oil & Gas Petrochemical Gas Compressor Storage Oil & Gas Equip. Pipelines Power Plants Complexes & Metering Tanks Platforms Manufacturing Stations Motorways Bridges Stadiums High-Rises Marine Metro & Tunnels Real Estate Terminals & Railways Jetties
Slide 17: Overview
Engineering & Contracting Overview Overview ➢ With its sister companies Tekfen Engineering, Tekfen Manufacturing, Hallesche Mitteldeutsche Bau-AG (HMB) (Germany), AZFEN (Azerbaijan) and strategic partnerships, Tekfen is positioned to extend its services to a large range of clients on three continent
Slide 18: Backlog Growth
Engineering & Contracting Backlog Growth Backlog (US$ million) - 31 December 2022 3,670 3,419 2,998 2,747 2,373 2,150 2,005 2.888 1,740 1,830 2.841 1,694 1,711 1,715 1,461 2.524 1,333 1.619 1,403 1,259 2.480 1,256 1,158 1.449 1.589 1.139 744 685 726 1.535 1.668 1.794 1.552 535 1.350 1.2571.225 1.351
Slide 19: Backlog (as of December 2022)
Engineering & Contracting Backlog (as of 31 December 2022) Revenue Based Expected Current Completion Remaining Project Location End Dates Contract Price Tekfen Portion Rate Amount (US$) Provision of Civil / Structural Construction, Mechanical Fabrication, Mechanical Construction, Instruments Control
Slide 20: Ongoing projects (as of December 2022)
Engineering & Contracting Ongoing projects (as of 31 December 2022) Backlog Breakdown by Regions Backlog Breakdown by Project Types Fabrication Turkey 7% Pipeline 3% 21% Buildings 14% Transportation 10% Caspian Region Middle East Industiral 27% 53% Facilities 65% Region US$ (million) Project Type US
Slide 21: Engineering
Engineering & Contracting Engineering Tekfen Engineering Co., Inc. ❖ Founded in 1984. ❖ The Largest Engineering Company in Turkey, in Oil & Gas ❖ Undertakes the engineering (E) of EPC projects and the detailed engineering in other projects of Tekfen Contracting Group. ❖ Has experience on a wide spec
Slide 22: Tekfen Manufacturing Co., Inc.
Engineering & Contracting Tekfen Manufacturing Co., Inc. ▪ Founded in 1970. ▪ Specialized mainly in engineering, manufacturing and construction of high quality process and storage equipment related to petroleum, petrochemical, chemical and fertilizer industries and power plants, such as cylindrical
Slide 23: Fabrication Plants
Engineering & Contracting Fabrication Plants Ceyhan Steel Structure Fabrication Plant Bayil Steel Construction Manufacturing Plant ✓ Spread on an area of 160,000 m2, of which 30,000 m 2 is ✓ Tekfen’s manufacturing facility in Baku, Azerbaijan covered, ✓ Spread on an area of 290,000 m2, of which 26,0
Slide 24: Revenues and EBITDA Margin
Engineering & Contracting Revenues and EBITDA Margin Revenues (TRYmn) and EBITDA Margin (%) 20,0% 15,0% 13,2% 13,7% 11,2% 11,3%10,5% 10,0% 9,3% 9,3% 8,5% 7,3% 7,6% 5,0% 5,9% 5,8% 0,0% -1,4% -5,0% -4,3% -4,8% -10,0% -13,1% -15,0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 25: Ongoing projects – Caspian Region
Engineering & Contracting Ongoing projects – Caspian Region AZERBAIJAN – THE NEW MANAGEMENT OFFICE OF MINISTRY OF TAXATION OF AZERBAIJAN One of the newest landmark of Baku, The New Management Office of Ministry of Taxation of Azerbaijan will be constructed by Tekfen Construction. Total construction
Slide 26: Ongoing projects – Caspian Region
Engineering & Contracting Ongoing projects – Caspian Region KAZAKHSTAN – AREA 51 MULTI WELL PAD PROJECT The Future Growth Project (FGP) is major expansion of three new facilities: the 3rd Generation Plant (3GP), Pressure Boost Facility (PBF) and the 3rd Generation Injection (3GI), which will increas
Slide 27: Ongoing projects - Middle East
Engineering & Contracting Ongoing projects - Middle East QATAR – DESIGN AND BUILD OF AL KHOR EXPRESSWAY The Project comprises the Design and Build of a 34 km long expressway b/w Al Khor and Doha with a total of 10 lanes in both directions (five traffic lanes in each direction) and various junctions,
Slide 28: Ongoing projects - Middle East
Engineering & Contracting Ongoing projects - Middle East QATAR – GENRAL WORKS FOR OFFSITES 2 OF THE NORTH FIELD EAST ONSHORE PROJECT EPC-1 PACKAGE Contract with Chiyoda Technip Joint Venture (CTJV) for General Works for Offsites 2 of the North Field East Onshore Project EPC-1 Package. The planned du
Slide 29: Ongoing projects - Middle East
Engineering & Contracting Ongoing projects - Middle East SAUDI ARABIA- HARADH & HAWIYAH FIELD SATELLITE GAS COMPRESSION SaGCP PIPELINES PROJECT Saudi Aramco is installing gas compression facilities at Haradh & Hawiyah Saudi Arabia under the Southern Area Energy Efficiency Program. The Program in Sou
Slide 30: Real Estate Development - Completed Projects
Engineering & Contracting Real Estate Development - Completed Projects 1994 2003 2006 2008 Akmerkez Tekfen Tower Taksim Residences Yalıkavak Homes • First Mixed-use dev. in Turkey • Class A+ Office Building • Residential Project • Summer House & Boutique Hotel • 180,000 m² Construction Area • Locate
Slide 31: Strategic Direction
Engineering & Contracting Strategic Direction Tekfen Engineering & Contracting Group consistently works on the following in line with the goals of its Strategic Plan: ✓ The Engineering & Contracting Group will adopt the “shrink to grow” strategy. The group companies will be restricted and selective
Slide 32: Agri Industry
Tekfen Group Agri Industry Tekfen Group Engineering & Chemical Agricultural Services Investment www.tekfen.com.tr Contracting Industry Production
Slide 33: Agri Industry Overview
Chemical Industry Agri Industry Overview → Agri industry turnover of TRY 19,562 million and EBITDA of TRY 2,854 million as of 2022 Turnover EBITDA 17.874 2.458 1.802 7.200 3.888 736 3.439 496 460 2.664 348 1.541 1.536 1.715 2.069 1.354 206 204 87 73 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 34: The pioneer in Turkey's agricultural industry
Chemical Industry Agri Industry | Fertilizer Overview The pioneer in Turkey’s agricultural industry ✓ Symbol of “quality” and “trust” ✓ In business since 1974 under TOROS brand name ✓ Almost 1,000 employees ✓ Supplying every type of fertilizer Turkish farmers need ✓ Market leader since 1986 ✓ Vast d
Slide 35: Regional Offices & Other Units
Chemical Industry Agri Industry | Fertilizer Regional Offices & Other Units TEKİRDAĞ ANKARA SAMSUN İSTANBUL REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE Head Office Warehouse Warehouse Warehouse ŞANLIURFA REGIONAL OFFICE Warehouse İZMİR REGIONAL OFFICE Warehouse ADANA REGIONAL OFFICE ANTALYA Bag
Slide 36: Regional Offices & Other Units
Chemical Industry Agri Industry | Fertilizer Regional Offices & Other Units UKRAINE COUNTRY OFFICE TOROS-AGROPORT 36 Tekfen Group Engineering & Chemical Agricultural Services Investment www.tekfen.com.tr Contracting Industry Production
Slide 37: Product Types
Chemical Industry Agri Industry | Fertilizer Product Types ➢ Nitrogen fertilizers: ➢ Phospate & Compound fertilizers (NPs and NPKs): ▪ AN26 (CAN) - Calcium Ammonium Nitrate ▪ DAP - Di-Ammonium Phosphate ▪ AN33 - Ammonium Nitrate ▪ NP 20.20; 20.20+Zn; Others ▪ AS - Ammonium Sulphate ▪ NPK 15.15.15; 1
Slide 38: Total Sales
Chemical Industry Agri Industry | Fertilizer Total Sales 2021 Total Sales: 1.92 million tons 2022 Total Sales: 1.62 million tons Phosphates 53% Phosphates 54% Nitrogen Nitrogen 47% 46% 38 Tekfen Group Engineering & Chemical Agricultural Services Investment www.tekfen.com.tr Contracting Industry Prod
Slide 39: Leader in Turkish Fertilizer Market
Chemical Industry Agri Industry | Fertilizer Leader in Turkish Fertilizer Market Consumption and Toros Sales Volume/Market share Turkey’s Total Production and Toros’ Share 8.000 35% 7.000 42% 41% 40% 45% 31% 30% 31% 39% 39% 29% 37% 37% 39% 36% 7.000 28% 27% 26% 26% 27% 6.000 40% 30% 6.000 23%24% 23%
Slide 40: Production Facilities
Chemical Industry Agri Industry | Fertilizer Production Facilities ✓ Three chemical fertilizer plants located in Mersin, Ceyhan and Samsun ✓ Two organic/organomineral fertilizer plant located in Gonen-Balikesir and Meram-Konya ✓ One water soluable fertilizer plant located in Mersin ✓ Total installed
Slide 41: Production Capacity
Chemical Industry Agri Industry | Fertilizer Production Capacity MERSIN PLANT CEYHAN PLANT SAMSUN PLANT AN and CAN production NPK and DAP production NPK and DAP production CAPACITY CAPACITY CAPACITY 660,000 tpa CAN 2 x 330,000 tpa NPK 330,000 tpa NPK or 325,000 tpa DAP NITRIC ACID CAPACITY 330,000 t
Slide 42: Biogas & Organic/Organomineral Fertilizer Plants
Chemical Industry Agri Industry | Fertilizer Biogas & Organic/Organomineral Fertilizer Plants GONEN PLANT (Balikesir) MERAM PLANT (Konya) 70% Subsidiary of Toros Tarim 70% Subsidiary of Toros Tarim CAPACITY CAPACITY 3.62 Mwe electricity production 6.0 Mwe electricity production 35,000 tons of organo
Slide 43: DAP/NP/NPK Production Diagram
Chemical Industry Agri Industry | Fertilizer DAP/NP/NPK Production Diagram ➢ In Samsun Plant, Toros produces sulphuric and phosphoric acid for all its DAP/NPK units. AMMONIA SULPHUR SULPHURIC ACID PHOSPHORIC DAP/NP/NPK UREA/AS* ACID PHOSPHATE ROCK POTASH** *Urea and/or AS is added as nitrogen (N) so
Slide 44: CAN/AN Production Diagram
Chemical Industry Agri Industry | Fertilizer CAN/AN Production Diagram ✓ In Mersin Plant, Toros produces nitric acid for its CAN/AN unit. AMMONIA AMMONIUM NITRATE AMMONIUM AIR NITRATE CALCIUM NITRIC ACID AMMONIUM NITRATE WATER LIME STONE 44 Tekfen Group Engineering & Chemical Agricultural Services I
Slide 45: Production and Imports
Chemical Industry Agri Industry | Fertilizer Production and Imports Production - Breakdown by Products Nitrogen Phosphates 67% 63% 63% 63% 63% 63% 61% 59% 58% 58% 42% 42% 37% 38% 36% 37% 33% 37% 35% 35% * 2013: 1.41 mn 2014: 1.49 mn 2015: 1.36 mn 2016: 1.30 mn 2017: 1.58 mn 2018: 1.60 mn 2019: 1.68
Slide 46: Product Stewardship
Chemical Industry Agri Industry | Fertilizer Product Stewardship ✓ In 2018, Toros Tarim became the first Turkish fertilizer producer who received IFA Protect & Sustain Certificate and distinct group of 55 producers from 51 countries. ✓ Product Stewardship refers to the industry’s Safety, Health and
Slide 47: Environmentally Conscious Production
Chemical Industry Agri Industry | Fertilizer Environmentally Conscious Production MERSIN PLANT CEYHAN PLANT SAMSUN PLANT ✓ Catalytic reduction system to ✓ ISO 14001:2015 Environment ✓ Emission Certificate keep NO X emission in exhaust Management ✓ ISO 14001:2015 Environment gases released to atmosph
Slide 48: Social Responsibility
Chemical Industry Agri Industry | Fertilizer Social Responsibility Supporting farmers; Raising awareness; ▪ Educational seminars and training programs ▪ Supporting UNFPA’s “Improving health conditions of through «Farmer Academy» to improve agricultural seasonal workers in agriculture” program in Tur
Slide 49: Tekfen Agri
Chemical Industry Agri Industry | Agricultural Production Tekfen Agri Tekfen Agri in Brief ✓ Founded in 2017. ✓ 90% of the Alanar Fruit and its affiliated company Alara Nursery was bought in 2017. ✓ Following an approval of The Ministry of Industry and Technology, Tekfen Agri Adana Agripark has beco
Slide 50: Tekfen Agri
Chemical Industry Agri Industry | Agricultural Production Tekfen Agri Micropropagation: ▪ Targets to meet the sector's demand for high quality, high-yield and disease-free homogenous seed, saplings and young plants ▪ First local successful producer of potato seeds on commercial scale by using microp
Slide 51: Tekfen Agri Financials
Agricultural Agri IndustryProduction | Agricultural Production Financials Revenues (TRYmn) 300 265 250 206 201 200 184 158 150 100 34 50 0 2017 2018 2019 2020 2021 2022 EBITDA (TRYmn) & EBITDA margin (%) Net profit (TRYmn) & Net margin (%) 0 0,0% 40 31 20,0% -6,0% -20 20 10,0% -2,4% -1,3% -9,4% -33,
Slide 52: Terminal Overview
Chemical Industry Agri Industry | Terminal Overview ✓ Providing loading/unloading and storage services to third parties ✓ Ceyhan Port: Turkey’s 7th largest dry bulk & general cargo port One of the most important transit terminals for petroleum products in Eastern Mediterranean ✓ Strong brand name as
Slide 53: Storage Capacity
Chemical Industry Agri Industry | Terminal Storage Capacity ➢ 1 jetty with 2 berths handling 14,000 tons of dry bulk cargo per day ➢ Closed storage area capacity: 210,000 tons ➢ Open storage area capacity: 300,000 tons SAMSUN PORT CEYHAN PORT ➢ 2 jetties with 8 berths handling 60,000 tpd of dry bulk
Slide 54: Handling of Products
Chemical Industry Agri Industry | Terminal Handling of Products Dry&Liquid Bulk and General Cargo * Petroleum Products Handled Quantity (mn tons) Occupancy Rate 6,96 77% 79% 6,00 5,60 70% 4,88 60% 4,48 4,42 4,18 4,40 4,40 55% 3,72 42% 43% 40% 9% 4% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 55: Terminal Financials
Services Agri Industry | Terminal Financials Terminal Revenues, EBITDA & Net Income (TRYmn) 399 257 244 215 202 171 145 153 137 143 133 123 120 120 117 85 91 93 90 83 82 69 72 67 68 54 42 30 23 32 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues EBITDA Net Income 55 Tekfen Group Engineerin
Slide 56: Adana Yumurtalık Freezone (TAYSEB)
Chemical Industry Agri Industry | Others Adana Yumurtalık Freezone (TAYSEB) ➢ Established in 1990 ➢ Founding partner and operator of the one of the largest free zones in Turkey ➢ 4.5 million m2 of area and fully installed infrastructure ➢ One of Turkey's biggest free zones today ➢ Strategically loca
Slide 57: Investments
Investments INVESTMENTS Tekfen Group Engineering & Chemical Agricultural Services Investment www.tekfen.com.tr Contracting Industry Production
Slide 58: Rental Activities & Facility Management
Investments Rental Activities & Facility Management → Tekfen Holding earns rental income from the offices it owns in Akmerkez and Tekfen Tower. → Tekfen Tower has 33.000 m² rentable area, of which, 30% is used by Group Companies, while the rest is rented to various institutions. → Facility Managemen
Slide 59: Tekfen Insurance
Investments Tekfen Insurance → Tekfen Insurance started the insurance operations as the agency of La Suisse Insurance in 1982. → Tekfen Insurance continues today with the agency in all insurance branches in Turkey and 18 of the world's leading insurance companies. 59 Tekfen Group Engineering & Chemi
Slide 60: Tekfen Ventures
Investments Tekfen Ventures Investing in the Future Based in New York City, Tekfen Ventures is an early stage venture fund investing in technologies that will redefine our sectors. As a leader in our industry, we have the opportunity and responsibility to help drive the critical innovations they nee
Slide 61: SOCAR Polymer
Investments SOCAR Polymer ✓ Founded in 2013 ✓ 184 kta PP and 120 HDPE kta production capacity ✓ PP and HDPE plants were put into operations in July 2018 and February 2019, respectively ✓ 10% of the shares are owned by Tekfen Holding ✓ Turkey, Azerbaijan, Western and Central Europe and Russia are the
Slide 62: Appendix
Tekfen Group Appendix Financial Highlights 63 Net Cash Position 64 Capital Expenditures 65 Disclaimer 66 Contact Info 67 Tekfen Group Engineering & Chemical Agricultural Services Investment www.tekfen.com.tr Contracting Industry Production
Slide 63: Financial Highlights – Segmental Breakdown
Tekfen Group Financial Highlights – Segmental Breakdown (TRY Million) Revenue 2021 2022 Contracting & Engineering 8,233 10,958 Agricultural Industry 7,905 19,562 Investment 85 149 Total 16,223 30,668 EBITDA 2021 Margin 2022 Margin Contracting & Engineering -1,045 -12.7% 661 6.0% Agricultural Industr
Slide 64: Net Cash Position
Tekfen Group Net Cash Position Tekfen Group Net Cash Position (USD million) Net Cash Position by segment (USD million) 684 112 115 566 560 69 356 183 199 143 129 90 94 69 33 0 -73 -63 -158 2022 Consolidated Net Cash Engineering & Contracting Agri Industry Investment Consolidated * Net of financial l
Slide 65: Capital Expenditures
Tekfen Group Capital Expenditures Tekfen Group Capital Expenditures (TRY million) Capital Expenditures by segment (TRY million) 905 686 906 568 556 402 296 262 292 193 193 184 170 233 97 27 2022 Consolidated Capital Expenditures Engineering & Contracting Agri Industry Investment Consolidated 65 Tekf
Slide 66: Disclaimer
Tekfen Group Disclaimer Tekfen Holding A.S. (the “Company”) has prepared this presentation (the “Presentation”) in order to provide investors with general information about the Company. The contents of this Presentation is based on public information and on data provided by the Company management. N
Slide 67: Contact Information
Tekfen Group Contact Information For General Questions and Requests for Reports: Çağlar Gülveren, CFA Investor Relations and Corporate Governance Director, Tekfen Group of Companies E-mail: caglar.gulveren@tekfen.com.tr / investor@tekfen.com.tr TEL: +90 212 359 34 20 Sezer Ercan Investor Relations A