12 MAY 2014 TORUNLAR TODAY (As of 31.12.2013)
Key Facts Total Assets Total Sales
Real Agribusiness Energy Estate Total Assets Total Equity Net Sales 15.7% 22.9% 8.0% TRY 9.5bn TRY 4.1bn TRY 3.4bn
Agribusiness 30.0% Cities Energy Real Estate Employees of Operations 62.0% 61.4% 752 12
AGRIBUSINESS REAL ESTATE ENERGY ▪ A leading company in oilseed, soybean, ▪ The 2nd largest REIC in terms of portfolio ▪ The 2nd largest natural gas distribution sunflower, rice and sugarbeet processing value and market cap among 30 players company of Turkey; serving 6.5% of Turkey's 75 million population in Ankara ▪ The largest 98th industrial company in ISO ▪ Best and most diversified portfolio ▪ 1.5 million household customers 500 (İstanbul Chamber of Industry) ranking (2012) ▪ Competes against such multinationals as ▪ 7.6% market share in REIC business ▪ 3.5 billion m3 natural gas selling and Cargill, Bunge and Noble transportation volume ▪ 7.7% market share in Turkey and 35% market share among private players
2 Key Overview
TRY (000) 2011 2012 2013 2014/03
Sales 162,909 225,031 343,769 246,818
Residence 37,758 84,691 193,451 206,849
Mall Rental 91,969 102,232 115,990 30,997
Other 33,182 38,108 34,328 8,972
EBITDA 82,218 139,316 157,623 56,519
EBITDA Margin 50.5% 61.9% 45.9% 22.9%
Net Profit 177,312 336,885 190,556 20,490
Accretive Mixed-Use Investments Market Cap 889,280 1,610,000 1,380,000 1,395,000 1.4 bn TRY invested since 2010
Portfolio Value 3,818,283 4,432,710 5,796,976 5,501,655
Net Asset Value 2,532,906 2,847,035 2,987,591 3,008,081 Steady rental income generator
Capex 206,831 310,716 495,888 193,321
Net Debt 444,931 524,529 1,537,415 1,654,047 Managing 6.0 billion TRY Assets LTV 14.90% 13.96% 35.75% 38.49%
3 Project Locations – Turkey –
ISTANBUL SAMSUN ANKARA
• Torium Shopping Mall Kiptaş Finanskent Phase II • Ankamall Shopping Mall • NishIstanbul Mixed-Use Project Maltepe Land • Boulevard Samsun • Mall of Istanbul Kemankeş Land Shopping Mall • Crowne Plaza Hotel • Torun Tower Kayabaşı Land • Torun Center Paşabahçe Ex-TEKEL Land 3
BURSA ANTALYA
• Zafer Plaza Shopping Mall • Deepo Outlet Mall MUĞLA • Korupark Shopping Mall • Korupark Residences Phase I-II • Netsel Marina • Deepo Outlet Extension Project • Korupark Residences Phase III 4
Project Locations – İstanbul –
3 1Q 2014 Highlights
Challenging domestic environment caused by political uncertainty coupled with rising interest and currency rates
Sales revenues up 425.3% at TRY 246.8 mn, boosted mostly by deliveries of Mall of Istanbul
Rental income up 14.1% at TRY 31 mn on the back of robust footfall (5.2%) and sales turnover (11.4%)
90% of MOI and 30%of Torun Center already sold with first signs of recovery in the residential markets in April
EBITDA up 84.7% at TRY 56.5 mn on the back of solid sales and operational savings
EBITDA margin at 22.9% crippled by MOI deliveries due to revenue recognition of lower priced first-in sold units, allocation of TRY 203 mn fair valued land cost and TRY 36 mn financial expense to CGS
Net debt at TRY 1.6 bn driven by 2.5% currency impact and TRY 300 mn cash outflow to pay back the principal
CAPEX more than doubled to TRY 193.3 mn Y-o-Y
NAV at TRY 6.02 (Q1 2013: TRY 5.83)
6
Build to Rent Assets
Operation Development Cost Appraisal Value (TRY) Land Cost Total Cost * Date Year 1 Year 2 Year 3 Total 2012 2013 Malls - in operation 69,276,753 348,876,398 418,153,151 1,741,921,375 1,866,489,969 Zafer 1999 18,448,375 18,448,375 197,948,489 222,922,442 Korupark 3Q 2007 6,719,681 77,315,718 84,035,399 695,068,628 761,707,784 Deepo Outlet 4Q 2004 7,700,000 10,149,518 17,849,518 212,631,598 238,480,705 Torium 4Q 2010 54,857,072 221,069,212 275,926,284 583,749,524 584,642,922 Samsun 3Q 2012 11,976,187 9,917,388 21,893,575 21,893,575 52,523,136 58,736,116 Malls - upcoming 113,469,959 541,939,128 655,409,087 1,088,492,395 1,306,439,135 MOI 2Q 2014 113,469,959 84,308,286 108,406,343 284,461,499 477,176,128 590,646,087 1,034,334,045 1,251,462,316 Deepo Extension 3Q 2016 64,763,000 64,763,000 64,763,000 54,158,350 54,976,819 Offices - upcoming 46,637,080 135,578,740 182,215,820 279,561,544 374,949,794 Torun Tower 2Q 2014 46,637,080 28,851,641 92,771,712 13,955,387 135,578,740 182,215,820 279,561,544 374,949,794 Offices - upcoming 54,110,355 52,870,000 106,980,355 355,793,650 395,438,698 Hotel Paşabahçe ** 4Q 2016 54,110,355 2,643,500 15,861,000 34,365,500 52,870,000 106,980,355 355,793,650 395,438,698 TOTAL 229,383,792 1,026,394,266 1,255,778,058 3,465,768,963 3,943,317,595
2012 2013 2014 F (TRY) GLA (sqm) Rental Revenues NOI Yield Rental Revenues NOI Yield Rental Revenues NOI Malls - in operation 219,135 107,379,793 98,015,078 5.80% 117,928,981 108,363,848 5.81% 129,529,564 122,484,813 Zafer 23,449 16,139,678 11,662,531 5.89% 18,081,937 13,066,007 5.86% 16,476,831 14,478,417 Korupark 71,267 44,458,978 44,302,093 6.37% 51,601,449 52,646,751 6.91% 58,824,259 59,367,018 Deepo Outlet 18,181 13,458,758 13,103,384 6.16% 14,966,612 14,258,381 5.98% 16,727,672 16,690,152 Torium 88,177 31,812,804 27,809,186 4.76% 29,366,797 25,534,357 4.37% 32,127,486 27,617,566 Samsun 18,061 1,509,575 1,137,884 4.33% 3,912,186 2,858,352 4.87% 5,373,316 4,331,660 Malls - upcoming 180,613 30,653,471 24,925,929 MOI 153,963 30,653,471 24,925,929 Deepo Extension 26,650 Offices - upcoming 66,286 6,988,769 6,889,522 Torun Tower 66,286 6,988,769 6,889,522 Hotels - upcoming 6,000 0 0 Hotel Paşabahçe ** 6,000 TOTAL 472,034 107,379,793 98,015,078 5.42% 117,928,981 108,363,848 5.81% 167,171,804 154,300,264 * Total cost denotes historical cost of project ** Hotel Paşabahçe 2012 appraisal value 217.5mnTL and expected 2016 NOI 37.2mnTL
7 Build to Sell Assets
Construction Revenues (TRY) Start Year Completion Year Land Area Land Cost Construction Cost Total Cost* Area TRY TRY per sqm Completed Projects 102,940 51,397,138 484,508 319,313,900 370,711,037 632,391,607 2,216
Korupark Residences Phases I-II 2Q 2006 4Q 2008 47,434 5,993,043 221,979 123,535,895 129,528,938 229,404,835 1,852 NishIstanbul 2H 2008 4Q 2010 19,733 37,200,000 81,175 79,509,556 116,709,556 167,682,582 3,128 Residences 12,781 24,093,620 52,575 55,380,486 79,474,106 92,999,393 2,913 Offices 4,325 8,153,749 17,792 22,339,396 30,493,144 46,999,872 3,816 Stores 2,627 4,952,631 10,807 1,789,674 6,742,305 27,683,317 2,956 Korupark Residences Phase III 2Q 2011 4Q 2012 35,773 4,503,546 166,402 104,185,610 108,689,156 225,010,310 2,202 Torium Residences 2Q 2008 2H 2011 3,700,549 14,952 12,082,839 15,783,388 10,293,881 1,799 Ongoing Projects 66,463 395,352,004 402,025 739,435,486 1,134,787,490 2,206,976,116 7,280 Torun Center 3Q 2012 3Q 2015 22,516 332,150,000 157,794 425,194,749 757,344,749 1,503,151,773 10,650 Residences 10,329 152,365,398 72,384 195,047,319 347,412,717 781,146,157 12,256 Offices 7,149 105,456,846 50,099 134,998,335 240,455,181 449,635,436 9,904 Stores 5,039 74,327,756 35,311 95,149,094 169,476,850 272,370,179 8,512 MOI 1Q 2011 4Q 2013 43,947 63,202,004 244,231 314,240,737 377,442,741 703,824,343 4,344 Residences 34,913 51,304,319 194,025 252,109,781 303,414,100 507,979,232 4,141 Offices 9,034 11,897,685 50,206 62,130,956 74,028,641 195,845,111 4,979 Upcoming Projects 15,626 319,157,847 69,339 138,861,900 458,019,747 943,004,507 17,952 Maltepe Residences 4Q 2013 4Q 2015 7,285 18,268,202 23,957 33,539,100 51,807,302 69,761,328 3,640 Villa Paşabahçe 1Q 2014 4Q 2015 8,341 300,889,645 45,382 105,322,800 406,212,445 873,243,179 26,173 TOTAL 185,030 765,906,989 955,871 1,197,611,286 1,963,518,275 3,782,372,230 5,900 *Total cost denotes historical cost of project Sellable Area 2010 2011 2012 2013 2014 F 2015 F PROJECT (TRY) Unit (sqm) Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue TOTAL Completed Projects 2,175 285,360 1,249 141,502 295,232,000 108 16,917 37,898,772 330 45,387 91,921,184 139 24,362 54,506,880 171 27,628 79,330,482 145 24,012 63,591,442 632,391,607 Korupark Residences 744 123,840 621 99,443 175,788,000 64 11,979 25,379,000 7 1,437 3,271,730 5 1,183 2,304,941 14 2,916 6,665,615 16 3,861 9,267,565 229,404,835 Phases I & II ** Korupark Residences 678 102,195 306 42,057 81,505,780 124 21,336 44,429,485 131 20,289 50,405,886 117 18,513 48,669,159 225,010,310 Ph. III NishIstanbul 700 53,602 628 42,059 119,444,000 41 4,592 11,956,102 6 955 5,588,080 4 1,080 6,525,424 18 3,427 20,418,218 3 605 3,750,758 167,682,582 Residences 585 31,922 560 30,556 86,775,730 22 1,192 4,527,000 1 112 633,663 0 0 0 2 179 1,063,000 92,999,393 Offices 63 12,315 50 9,351 26,556,175 5 810 7,429,102 4 1,080 6,525,424 4 1,074 6,489,171 46,999,872 Stores 52 9,365 18 2,152 6,112,095 14 2,590 0 5 843 4,954,417 0 0 0 12 2,174 12,866,047 3 605 3,750,758 27,683,317 Torium Residences 53 5,723 3 346 563,670 11 938 1,555,594 6 763 1,247,030 8 996 1,840,762 9 1,032 1,903,960 10,293,881 Ongoing Projects 1,918 303,139 0 0 0 572 62,195 205,129,568 278 41,177 169,490,093 304 52,870 345,395,999 144 28,420 229,524,606 56 43,235 443,952,040 2,206,976,116
Torun Center 634 141,135 109 26,319 219,366,986 14 10,351 123,158,996 0 37,368 402,500,000 1,503,151,773 Residences 408 63,734 53 8,490 95,242,015 8 5,520 71,106,624 0 15,211 188,140,000 781,146,157 Offices - Towers 113 45,401 31 13,530 86,328,420 2 2,705 33,229,831 0 9,890 110,860,000 449,635,436 Offices - Flat 113 31,999 25 4,299 37,796,551 4 2,127 18,822,542 0 12,268 103,500,000 272,370,179 MOI 1,284 162,004 572 62,195 205,129,568 278 41,177 169,490,093 195 26,550 126,029,013 130 18,069 106,365,610 56 5,867 41,452,040 703,824,343 Residences 1,081 122,672 533 54,848 176,692,968 222 29,688 125,763,172 164 19,773 93,324,107 97 12,368 71,595,945 40 3,622 24,460,040 507,979,232 Offices 203 39,332 39 7,346 28,436,600 56 11,490 43,726,921 31 6,777 32,704,906 33 5,700 34,769,665 16 2,245 16,992,000 195,845,111 Upcoming Projects 182 52,529 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 133 16,073 150,002,150 943,004,507 Maltepe Residences 120 19,165 120 9,583 33,539,100 69,761,328 Villa Paşabahçe 62 33,364 13 6,490 116,463,050 873,243,179 TOTAL 4,275 641,029 1,249 141,502 295,232,000 680 79,112 243,028,340 608 86,565 261,411,276 443 77,231 399,902,879 315 56,048 308,855,089 334 83,319 657,545,632 3,782,372,230
8 Financial Highlights (million TRY)
PORTFOLIO VALUE ______
CAPEX ______
9 Financial Highlights (million TRY)
SALES ______
PRESALES ______
10 Financial Highlights (million TRY)
EBITDA ______
NET PROFIT ______
11 KPI Summary
2014/03 2013/12 Variance Total net debt (000 TRY) 1,654,047 1,537,415 7.59% Average loan term (years) 5 5 Average overall interest rate* 4.34% 4.33% 0.01 pp Leverage (financial loans as % of total assets) 39.4% 40.5% -1.11 pp Net debt to equity ratio 55.0% 51.5% 3.53 pp Net debt/Assets (%) 27.2% 24.2% 3.01 pp Equity to assets ratio 49.5% 47.0% 2.46 pp Loan to property value ratio (LTV) 38.5% 35.7% 2.75 pp Interest coverage ratio (times) 2.5 2.6 -0.08 pp Net debt/EBITDA (times) 7.32 9.75 -2.44 pp Net Debt/Mcap 118.6% 111.4% 7.16 pp Headcount 155 176 -11.93% * Excl. TRY Loans
TL Equivalent (000) € $ Variance (%) 31.03.2014 31.12.2013 Net foreign currency asset (liability) -178,964 -584,218 -1,817,505 -1,747,284 -4.0
12 Mall Portfolio Encompasses Entire Retail Spectrum
March 2014 Antalya Deepo Zafer Plaza Istanbul Torium Bursa Korupark Total
Revenues (MillionTL) 5.4 4.7 11.3 18.1 39.5
LfL Revenue Growth 9.0% 10.7% 2.4% 14.3% 9.5% Rate NOI 3.9 3.4 7.2 14.8 29.4 (Million TL) LfL NOI 34.2% 10.5% 12.3% 18.9% 17.9% Growth Rate
Footfall (Million) 1.2 3.4 2.7 2.7 10.1
LfL Footfall 3.5% 7.7% 4.4% 3.9% 5.3% Growth Rate Mall Turnover 33.0 40.7 68.9 109.7 252.3 (Million TL) LfL Mall Turnover 9.2% 10.6% 7.7% 15.0% 11.5% Growth Rate Expiration of Lease Contracts in terms of Fixed Rent 32%
25%
18% 17%
4% 5%
2014 2015 2016 2017 2018 > 2018
13 Mall Portfolio Encompasses Entire Retail Spectrum
VALUE PREMIUM March 2014 Antalya Deepo Zafer Plaza Istanbul Torium Bursa Korupark Total GLA ( m2 ) 18,181 23,449 88,177 71,267 201,074 OPEX CR 100% 60% 87% 108% 90% (Com. A.I./OPEX) OCR 9.97% 11.91% 9.48% 11.96% 11.01% (Fixed Rent/Sales) Sales Efficiency 606 TL 579 TL 258 TL 513 TL 418 TL (Sales/sqm/month) Spending per Basket 27.63 TL 11.81 TL 25.28 TL 39.96 TL 24.95 TL
Time to Expire (years) 1.3 2.0 1.6 4.7 N/A
Active Number of Stores 87 122 149 189 547
Occupancy 100% 100% 83% 99% 92%
Fixed Rent (sqm/month) 22.72 € 35.40 $ 19.36 $ 23.95 € 20.14 €
Turnover Rent (as % of fixed rent) 8.60 2.03 7.72 1.77 4.25
18% $ 64% $ 74% $ 13% $ 38% $ Breakdown of Rental Revenues 82% € 36% € 26% € 87% € 62% €
% of GLA 20% 25% 33% 43% 38%
% of Rental 11% 29% 33% 40% 39%
Revenue Tenants Share of Share % of Retail 24% 32% 47% 44% 0% International Turnover
14 Shopping Mall Breakdown by Category (March 2014)
Leased Area Leased Area SALES/ SQM/ FIXED RENT/ Breakdown of Monthly Average (TRY) (SQM) Breakdown MONTH SQM/ MONTH Rental Footfall Spending Per Anchor 30,489 17% 359 25 8%
Home 7,191 4% 438 64 5%
Ready Wear 76,326 41% 505 61 50%
Department Store 13,377 7% 305 23 3%
Service 5,638 3% 218 44 3%
Leisure/Gift/Special 4,715 3% 495 70 4%
Personal Care/Accessories 5,250 3% 1,178 116 7%
Entertainment 21,077 11% 111 14 3%
Technology 6,956 4% 790 71 5%
Food&Drink 13,132 7% 653 92 13%
TOTAL 184,151 100% 450 51 100% 3,346,049 24.76
2013 (Same Month) 192,293 378 41 100% 3,199,319 22.71
Variance -4.23% 19.09% 24.95% 4.59% 9.04%
15 The Home of the Flagships
Top 10 tenants account for 30.95% of total GLA and 24.81% of total fixed rent revenues
• Rank: 1 • Rank: 2 • Rank: 3 • Rank: 4 • Rank: 5 • GLA: 15,159 (7.4%) • GLA: 11,633 (5.7%) • GLA: 7,439 (3.7%) • GLA: 2,187 (1.1%) • GLA: 5.179 (2.5%) • 5.8% of Monthly • 3.1% of Monthly • 3.1% of Monthly • 2.1% of Monthly • 2.1% of Monthly Fixed Rent Fixed Rent Fixed Rent/ Fixed Rent Fixed Rent
• Rank: 6 • Rank: 7 • Rank: 8 • Rank: 9 • Rank: 10 • GLA: 8,434 (4.1%) • GLA: 3,438 (1.7%) • GLA: 2,001 (1.0%) • GLA: 5,149 (2.5%) • GLA: 2,410 (1.2%) • 2.1% of Monthly • 1.8% of Monthly • 1.6% of Monthly • 1.5% of Monthly • 1.5% of Monthly Fixed Rent Fixed Rent Fixed Rent Fixed Rent Fixed Rent
16 Maturity of Financial Loans
300
Financial loans*: TRY 2.375 mn TRY lion > 71.5%USD, 25.8%€, 2.7%TRY Mil USD > 44% fixed, %56 floating EUR
250 264
200
183
150
162
135 135
100
115
96
63
72
50
56
45
34
33 33
7
0 0 0 0 0 1 0 1 0 0 0 0 0 15 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
The table represents the principal balances as of 31.03.2014. The Company has 737.8 million TL cash and cash deposits. In the Q1 2014, the Company has already paid back its principal in 70 million TL, US$ 110 million and €15 million respectively.
17 Landbank
PAŞABAHÇE - ISTANBUL
• Hotel & Mansions 71,909 sqm (395.4mn TRY)
BAŞAKŞEHİR - ISTANBUL
•MOI Office 18.209 sqm (27.5 mnTRY) •MOI Hotel 12,132 sqm (TBD)
MALTEPE - ISTANBUL
•Residence 6.928 sqm (18.4 mn TRY)
KAYABAŞI - ISTANBUL
•Residence 60.833 sqm (21.2 mn TRY)
EYÜP – İSTANBUL
•Residence 515,977 sqm (TBD)
18 Project Pipeline - CAPEX (million TRY)
Actual CAPEX Budget Spent to 2014 2015 2016 2017 Date MOI 791.4 687.7 103.7 Torun Tower 135.6 66.3 69.2 Torun Center 425.2 128.1 134.7 162.4 Paşabahçe Bosphorous 286.1 28.6 114.4 143.0 Project Maltepe Land 33.5 6.7 13.4 13.4 Kemankeş Boutique Hotel 17.2 0.0 5.1 8.6 3.4 MOI 2nd Phase - Office 142.9 57.2 71.5 14.3 0.0 Kiptaş 1,072.4 107.2 321.7 429.0 214.5 Deepo Extension Project 64.8 19.4 42.1 3.2 0.0 TOTAL 2,969.1 882.1 526.8 730.7 611.5 217.9
19 Project Pipeline - Evolution of the Projects (m2)
GLAGSA (m2) 2013 2014 2015 2016 2017 2018
Retail 224,645 378,608 378,608 405,259 405,259 405,259
Residence 159,373 159,373 241,543 274,907 620,258 620,258
Office 14,971 81,257 158,573 158,573 158,573 158,573
Hotel 2,907 2,907 2,907 54,907 54,907 54,907
Marina 3,431 3,431 3,431 3,431 3,431 3,431
Other 6,718 6,718 19,873 19,873 19,873 19,873
Total 412,045 632,294 804,935 916,950 1,262,301 1,262,301
Land 282,484 271,385 242,454 60,833 60,833 60,833 2 billion TRY Capex
20 Project Pipeline - GLA+GSA Breakdown by City
412,045 sqm CAGR : 45% 1,262,301 sqm
21 NAV Evolution
7,00 25,00%
Billionn Billionn TL 6,00 20,15% 19,00% 20,00%
5,00
15,00% 4,00 12,77%
3,00
5,9 10,00%
5,4
4,8
2,00
6,92% 4,0
5,00% 1,00
0,00 0,00% 2014 2015 2016 2017
NAV EBITDA/NAV
22 FUTURE OUTLOOK- 2014 Budgeted Income Statement (TRY)
mn TL 2014 B 2013 YoY 2012 YoY Sales 763,717 343,769 122.2% 225,031 52.8% Residence & Office 548,610 193,451 183.6% 84,691 128.4% Mall rental 166,615 115,990 43.6% 102,232 13.5% Other 48,493 34,328 41.3% 38,108 -9.9% Cost of sales (504,960) (177,953) 183.8% (86,339) 106.1% Residence & Office (440,127) (132,897) 231.2% (41,145) 223.0% Mall rental (8,341) (10,693) -22.0% (7,537) 41.9% Other (56,491) (34,363) 64.4% (37,657) -8.7% Gross profit 258,757 165,816 56.1% 138,692 19.6% Gross Margin 33.9% 48.2% -14.35 pp 61.6% -13.40 pp Gross Margin (Residence & Office) 19.8% 31.3% -11.53 pp 51.4% -20.12 pp Gross Margin (Mall) 69.9% 70.0% -0.17 pp 67.8% 2.23 pp
Opex (35,804) (26,031) 37.5% (16,997) 53.2% General&Admin exp (26,247) (19,633) 33.7% (11,718) 67.5% Mrkt and selling exp (9,557) (6,398) 49.4% (5,279) 21.2% Other income(expenses) 0 1,807 -100.0% (1,161) NA Net gain (loss) fair value adjustments on investment 0 222,203 -100.0% 156,638 41.9% property Operating profit 222,953 363,795 -38.7% 277,172 31.3% Operating profit excluding fair value adjustment 222,953 141,592 57.5% 120,534 17.5% Share of profit of associates (recurring) 11,787 15,295 -22.9% 12,835 19.2% EBIT * 234,740 156,887 49.6% 133,369 17.6% EBIT margin (%) 30.7% 45.6% -14.90 pp 59.3% -13.63 pp
Depreciation 900 736 22.3% 570 29.1% EBITDA 235,640 157,623 49.5% 133,939 17.7% EBITDA margin (%) 30.9% 45.9% -15.00 pp 59.5% -13.67 pp
Share of profits (non-recurring) 33,000 58,280 -43.4% (1,059) NA Net financial interest income(expense) (54,888) (60,639) -9.5% 14,396 NA Other net financial income (expense) 0 0 NA 2,045 -100.0% Forex gain (loss) (33,069) (184,854) -82.1% 33,628 NA Profit before tax 179,783 191,877 -6.3% 339,017 -43.4% Deferred Corporate tax 0 0 NA 0 NA Corporate tax (2,200) (1,321) 66.5% (2,132) -38.0% Net profit 177,583 190,556 -6.8% 336,885 -43.4% Net profit margin (%) 23.3% 55.4% -32.2 pp 149.7% -94.3 pp
23 Long Term Sales & EBITDA Forecast (TRY ‘000)
24 Cash Flow Statement (Forecast)
Cash Flow Statement (Forecast) 2014 2015 2016 2017 2018 CASH FLOW FROM OPERATIONS From Mall Rentals ( + ) 143,079,081 194,331,552 227,020,313 237,581,732 248,323,366 From Office Rentals ( + ) 7,195,662 42,749,687 44,439,757 44,530,696 44,597,313 From Hotel Rentals ( + ) 0 0 0 17,028,000 18,730,800 From Residence Pre-Sales and Sales ( + ) 603,246,289 1,252,227,728 1,731,477,170 854,506,685 0 Change in Trade Receiveables ( + ) 110,814,042 44,525,776 10,080,551 1,470,547 296,917 Operational Expenses ( - ) 35,803,977 26,608,389 65,941,927 37,453,026 29,722,431 Net Cash Flow from Operations 828,531,098 1,507,226,355 1,947,075,864 1,117,664,635 282,225,965
CASH FLOW FROM INVESTING ACTIVITIES Construction Costs ( - ) 526,764,510 755,358,486 602,959,287 214,485,976 0 Shopping Mall Renewal Costs ( - ) 1,667,329 1,870,478 1,960,213 2,119,155 2,282,317 Net Cash Flow from Investing Activities -528,431,839 -757,228,964 -604,919,500 -216,605,131 -2,282,317
CASH FLOW FROM FINANCING ACTIVITIES Cash receipt from 262,284,216 335,278,609 130,557,937 169,346,002 194,355,685 Issuance of stock ( + ) 0 0 0 0 0 Deposits ( + ) 93,502,100 102,312,609 112,994,937 150,027,002 173,104,685 Dividends ( + ) 11,787,000 15,966,000 17,563,000 19,319,000 21,251,000 Loans ( + ) 154,860,000 217,000,000 0 0 0 Repurchase of Stock Sell ( + ) 2,135,116 0 0 0 0
Cash paid for 614,364,673 870,261,409 995,168,002 700,846,488 538,300,364 Repurchase of stock ( - ) 0 0 0 0 0 Repayment of loans for investment ( - ) 564,364,673 753,239,424 775,893,354 473,426,983 476,260,690 Dividends ( - ) 50,000,000 117,021,985 219,274,648 227,419,505 62,039,674 Net Cash Flow from Financing Activities -352,080,457 -534,982,800 -864,610,064 -531,500,486 -343,944,679
Net Increase / Decrease in Cash -51,981,199 215,014,591 477,546,300 369,559,019 -64,001,031 Cash at the beginning of the term 1,026,387,000 974,405,801 1,189,420,393 1,666,966,692 2,036,525,711 Cash at the end of the term 974,405,801 1,189,420,393 1,666,966,692 2,036,525,711 1,972,524,680
25 TURKEY REAL ESTATE MARKET REVIEW
Source: Datastream
26 TURKEY REAL ESTATE MARKET REVIEW – Long-Term Demand Forecasts
Demographic- based Population Urban Household Urban Housing Need Urban (mn) Urbanization Population Size Household (mn) Renewal Transformation Total 2012 75.6 77.3% 58.4 4.10 14.3 0.33 0.05 0.0 0.41 2013 76.7 77.8% 59.6 4.08 14.6 0.38 0.05 0.1 0.52 2014 77.5 78.3% 60.7 4.06 15.0 0.33 0.05 0.2 0.58 2015 78.3 78.8% 61.8 4.03 15.3 0.36 0.05 0.2 0.61 2016 79.2 79.4% 62.9 4.00 15.7 0.38 0.05 0.2 0.63 2017 80.0 80.0% 64.0 3.97 16.1 0.39 0.05 0.2 0.64 2018 80.7 80.7% 65.1 3.95 16.5 0.40 0.05 0.2 0.65 2019 81.5 81.3% 66.3 3.92 16.9 0.43 0.05 0.2 0.68 2020 82.3 82.0% 67.5 3.88 17.4 0.44 0.05 0.2 0.69 2021 83.0 82.7% 68.6 3.85 17.8 0.44 0.05 0.2 0.69 2022 83.7 83.4% 69.8 3.82 18.3 0.45 0.05 0.2 0.70 2023 84.4 84.0% 71.0 3.79 18.7 0.45 0.05 0.2 0.70 2014-2023 total 4.09 0.50 2.00 6.59
Source: Turksat, GYODER, BofAML Global Research
27 TURKEY REAL ESTATE MARKET REVIEW – Turkey Residential Sales ( in units ) (*1Q 2014)
28 TURKEY REAL ESTATE MARKET REVIEW – Turkey Residential Permits (in units)
29 TURKEY REAL ESTATE MARKET REVIEW – Mall GLA per 1,000 People and Prime Rental Yield (%)
GLA per Prime Rental Yield Country 1,000 People (%) Sweden 639 4.50 The Netherlands 426 4.15 Latvia 358 6.00 Lithuania 341 6.00 Denmark 328 4.75 Spain 315 5.25 United Kingdom 292 5.00 Finland 291 5.20 Portugal 282 7.00 Ukraine 236 12.50 Italy 233 5.75 France 228 4.00 Poland 218 5.90 Czech Republic 208 6.25 Germany 190 4.50 Hungary 112 7.00 Turkey 110 7.00 Belgium 93 4.25 Romania 63 8.25
Source: CBRE, European Retail Guide Shopping Centers, DTZ, March 2013
30 TURKEY REAL ESTATE MARKET REVIEW – Shopping Mall Development
Under End 2011 End 2012 End 2013 Total**
Construction**
Unit 104 117 105 31 136
GLA (sq m) 3.08 M 3.46 M 3.51 M 1.35 M 4.86 M
İstanbul
Unit 198 220 247 45 292 Turkey
Rest of Rest GLA (sq m) 4.55 M 5.12 M 5.98 M 1.23 M 7.21 M
Unit 302 337 352 76 428
Turkey GLA (sq m) 7.63 M 8.58 M 9.49 M 2.58 M 12.07 M **as of end 2016 Source: Jones Lang LaSalle Retail Density - GLA per 1,000 Capita, Turkey City End 2012 End 2013 End 2016 Ankara 251 m2 272 m2 277 m2 İstanbul 254 m2 253 m2 316 m2 Karabük 186 m2 215 m2 182 m2 Bolu 171 m2 182 m2 292 m2 Antalya 120 m2 163 m2 146 m2 Eskişehir 114 m2 156 m2 147 m2 Muğla 136 m2 148 m2 159 m2 Gaziantep 103 m2 145 m2 140 m2 Bursa 143 m2 142 m2 186 m2 Turkey 114 m2 126 m2 150 m2 Source: Jones Lang LaSalle
31 TURKEY REAL ESTATE MARKET REVIEW – Turkey’s Mall League
Mall Opening Date GLA Location Developer 1 Forum Istanbul 2009 178,834 Istanbul Multi Turkmall 2 Mall of İstanbul* 2014 153,963 Istanbul Torunlar REIC 3 Marmara Forum 2011 137,500 Istanbul Multi Turkmall 4 Cevahir 2005 110,000 Istanbul Kuwait Investment Authority 5 Vialand 2013 110,000 İstanbul Gürsoy & Via Grup 6 Marmara Park 2012 100,000 Istanbul Ece Turkey 7 Ankamall 1999 107,804 Ankara Migros / Yeni Gimat REIC 8 Torium 2010 95,280 Istanbul Torunlar REIC 9 Istinyepark 2007 88,490 Istanbul Dogus, Orjin 9 Akasya Acıbadem 2014 86500 Istanbul Saf REIC / Akiş REIC 10 Anatolium 2010 84,165 Bursa Corio 11 Antares 2007 84,000 Ankara Dolunay 12 Panora 2007 82,591 Ankara Polat Holding 13 Forum Ankara 2008 80,000 Ankara Multi Development TR 14 Kent Park 2008 79,478 Ankara Mega Turk Construction 15 M1 Merkez Adana 2000 76,500 Adana Metro 15 Maltepe Park 2013 75,000 Istanbul CarrefourSA / Ece Turkey 16 Korupark 2007 74,580 Bursa Torunlar REIC 17 Cepa 2007 73,242 Ankara CarrefourSA 18 Forum Mersin 2007 71,125 Mersin Multi Turkmall 19 Anatolium Ankara 2011 70,000 Istanbul Corio 20 M1 Meydan Umraniye 2007 70,000 Istanbul Metro * Opening in 2Q 2014
Source: Akademetre Research and Eva Real Estate
32 TURKEY REAL ESTATE MARKET REVIEW – Office Rents and Prime Rental Yield
Prime Rent Prime Rental Yield Country (€/m2/Annum) (%) France 800.00 4.25 United Kingdom 708.19 4.75 UAE 606.21 7.00 Sweden 513.80 4.50 Germany 456.00 4.80 Italy 400.00 6.25 Turkey 398.95 7.75 Finland 386.00 5.20 The Netherlands 340.00 5.50 Ireland 323.00 6.00 Poland 312.00 6.15 Spain 294.00 6.00 Belgium 285.00 6.00 Czech Republic 240.00 6.25 Hungary 240.00 7.50 Denmark 228.07 5.00 Portugal 222.00 8.00 Romania 216.00 8.25
Source: CBRE
33 TURKEY REAL ESTATE MARKET REVIEW – Office Market Overview Grade A Office Stock Max. Min. Existing Projects GLA Pipeline Projects GLA Q4 2013 Sub Market (m2/month) (m2/month) (sq m) (sq m) ** Europe CBD $45 $35 1,039,000 596,000 Non CBD $35 $23 1,089,000 614,000 Asia $35 $25 1,313,000 687,000 Total $51 $23 3,441,000 1,897,000
** For completion by end 2016
Sources: Propin Istanbul Office Market Overview 2013 No:28 & Jones Lang LaSalle On Point Turkey Real Estate Overview February 2014
18,0 15,8 16,1 16,7 15,2 16,0
14,5 14,0 16,2 16,0 15,1 14,0 14,6 12,0 11,6 12,5 12,2 10,0
10,9 11,2 VacancyRate (%) 8,0
6,0 2013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q
Source: Propin CBD (Europe) Non CBD (Europe) Asia
34 TURKEY REAL ESTATE MARKET REVIEW – Hotel Market Overview
Number of 2013 2013 1Q 2014 1Q Foreign Visitors FULL YEAR
ISTANBUL 10,474,867 1,987,492 2,198,322
TURKEY 34,910,078 4,214,348 4,350,979
Ist. Share (%) 30.01 47.16 50.52
*Revpar: Revenue per available room
35 FINANCIAL STATEMENT - Income Statement
mn TRY 1Q 2014 1Q 2013 YoY Sales 246,818 46,990 425.3% Residence 206,849 10,614 1848.8% Mall rental 30,997 27,160 14.1% Other 8,972 9,216 -2.6% Cost of sales (190,632) (15,860) 1102.0% Residence (180,055) (4,693) 3736.7% Mall rental (1,830) (2,109) -13.2% Other (8,747) (9,058) -3.4% Gross profit 56,186 31,130 80.5% Gross margin 22.8% 66.2% -43.48 pp
Opex (4,312) (6,815) -36.7% General&Admin exp (2,068) (4,781) -56.7% Mrkt and selling exp (2,244) (2,034) 10.3% Other income(expenses) 600 198 203.0% Net gain (loss) fair value adjustments on investment property 0 0 0.0% Operating profit 52,474 24,513 114.1% Operating profit excluding fair value adjustment 52,474 24,513 114.1% Share of profit of associates (recurring) 3,913 5,914 -33.8% EBIT * 56,387 30,427 85.3% EBIT margin (%) 22.8% 64.8% -41.91 pp
Depreciation 132 180 -26.7% EBITDA * 56,519 30,607 84.7% EBITDA margin (%) 22.9% 65.1% -42.24 pp
Share of profits (non-recurring) (3,035) 3,225 -194.1% Net financial interest income(expense) (22,403) (4,616) 385.3% Other net financial income (expense) 0 0 NA Forex gain (loss) (9,768) 4,446 -319.7% Profit before tax 21,181 33,482 -36.7% Corporate tax (691) NA Net profit 20,490 33,482 -38.80% Net profit margin (%) 8.3% 71.3% -62.95 pp
36 FINANCIAL STATEMENT - Income Statement
mn TRY 2013 2012 YoY 2011 YoY Sales 343,769 225,031 52.8% 162,909 38.1% Residence & Office 193,451 84,691 128.4% 37,758 124.3% Mall rental 115,990 102,232 13.5% 91,969 11.2% Other 34,328 38,108 -9.9% 33,182 14.8% Cost of sales (177,953) (86,339) 106.1% (62,754) 37.6% Residence & Office (132,897) (41,145) 223.0% (20,231) 103.4% Mall rental (10,693) (7,537) 41.9% (4,790) 57.3% Other (34,363) (37,657) -8.7% (37,733) -0.2% Gross profit 165,816 138,692 19.6% 100,155 38.5% Gross Margin 48.2% 61.6% -13.40 pp 61.5% 0.15 pp Gross Margin (Residence & Office) 31.3% 51.4% -20.12 pp 46.4% 5.00 pp Gross Margin (Mall) 70.0% 67.8% 2.23 pp 66.0% 1.77 pp Opex (26,031) (16,997) 53.2% (24,515) -30.7% General&Admin exp (19,633) (11,718) 67.5% (13,777) -14.9% Mrkt and selling exp (6,398) (5,279) 21.2% (10,738) -50.8% Other income(expenses) 1,807 (1,161) NA (5,586) -79.2% Net gain (loss) fair value adjustments on investment 222,203 156,638 41.9% 182,534 -14.2% property Operating profit 363,795 277,172 31.3% 252,588 9.7% Operating profit excluding fair value adjustment 141,592 120,534 17.5% 70,054 72.1% Share of profit of associates (recurring) 15,295 12,835 19.2% 6,496 97.6% EBIT * 156,887 138,746 13.1% 81,927 69.4% EBIT margin (%) 45.6% 61.7% -16.02 pp 50.3% 11.37 pp Depreciation 736 570 29.1% 291 95.9% EBITDA * 157,623 139,316 13.1% 82,218 69.4% EBITDA margin (%) 45.9% 61.9% -16.06 pp 50.5% 11.44 pp
Share of profits (non-recurring) 58,280 (1,059) NA 38,731 NA Net financial interest income(expense) (60,639) 14,396 NA 1,334 979.2% Other net financial income (expense) 0 2,045 -100.0% 2,378 -14.0% Forex gain (loss) (184,854) 33,628 NA (122,414) NA Profit before tax 191,877 339,017 -43.4% 179,113 89.3% Deferred Corporate tax 0 0 NA - NA Corporate tax (1,321) (2,132) -38.04% (1,801) 18.38% Net profit 190,556 336,885 -43.44% 177,312 90.00% Net profit margin (%) 55.4% 149.7% -94.27 pp 108.8% 40.86 pp
37 FINANCIAL STATEMENT - Balance Sheet
(000 TRY) 2014/03 2013/12 Variance Cash and Cash Equivalents 737,877 1,033,198 -28.6 Trade Receivables 248,700 207,596 19.8 Inventory 339,384 485,489 -30.1 Prepaid Expenses 116,077 140,282 -17.3 Other Current Assets 15,162 7,535 101.2 CURRENT ASSETS 1,457,200 1,874,100 -22.2 Trade Receivables 28,808 32,868 -12.4 Invest.In Associates 276,148 275,754 0.1 Investment Property 3,653,763 3,514,788 4.0 Tangible Fixed Property 1,973 2,297 -14.1 Intangible Fixed Assets 172 150 14.7 Inventory 27,896 24,942 11.8 Prepaid Expenses 554,739 549,309 1.0 Other Non-current Assets 76,551 77,763 -1.6 NON-CURRENT ASSETS 4,620,050 4,477,871 3.2 TOTAL ASSETS 6,077,250 6,351,971 -4.3 ST Financial Liabilities 110,499 277,719 -60.2 ST Portion of LT Financial Liabilities 379,222 246,207 54.0 Trade Payables 100,821 103,726 -2.8 Other Payables 16,460 13,506 21.9 Tax Payables 690 497 38.8 Deferred Income 223,818 370,901 -39.7 Other Current Liabilities 7,221 5,787 24.8 CURRENT LIABILITIES 838,731 1,018,343 -17.6 Financial Liabilities 1,902,203 2,046,687 -7.1 Trade Payables 327,747 299,118 9.6 Provision For Employment Termination Benefits 488 232 110.3 Other Non-Current Liabilities 0 0 NA NON-CURRENT LIABILITIES 2,230,438 2,346,037 -4.9 Share Capital 500,000 500,000 0.0 Share Premium 25,770 25,770 0.0 Legal Reserves 16,639 16,639 0.0 Treasury Shares -1,195 -1,195 0.0 Retained Earnings 2,446,377 2,255,821 8.4 Net Profit 20,490 190,556 -89.2 TOTAL EQUITY 3,008,081 2,987,591 0.7 TOTAL LIABILITIES AND EQUITY 6,077,250 6,351,971 -4.3
38 LISTED REIC’s - REICs on the ISE (As of 01.04.2014)
3M avg. daily trading Current M.Cap Dividend Yield Dividend Yield Dividend Yield Listed REITs Free Float volume (TRY mn) (2010) (2011) (2012) 1 EMLAK KONUT GMYO 51% 110.051 9,728 - 2.6% 2.0% 2 TORUNLAR GMYO 14% 1.832 1,525 - 0.9% 2.3% 3 DOĞUŞ GMYO 8% 5.216 1,102 - - - 4 VAKIF GMYO 10% 1.799 947 - - - 5 SAF GMYO 29% 0.423 931 - - 16.5% 6 YENİ GİMAT GMYO 77% 0.152 841 - - - 7 İŞ GMYO 48% 1.558 813 3.0% 2.8% 4.0% 8 HALK GMYO 23% 0.802 714 - - - 9 AKMERKEZ GMYO 2% 0.164 689 4.6% - 4.7% 10 SİNPAŞ GMYO 37% 3.195 456 - 3.1% 4.3% 11 AKİŞ GMYO 27% 0.120 441 - - - 12 ÖZAK GMYO 3% 1.513 333 - 13 PANORA GMYO 13% 0.095 325 - - - 14 AKFEN GMYO 24% 0.368 226 - - - 15 ALARKO GMYO 48% 4.475 211 - 0.7% 1.7% 16 NUROL GMYO 20% 3.244 164 - - - 17 KİLER GMYO 35% 0.484 128 - - - 18 SERVET GMYO 13% 0.114 110 - - - 19 ATAKULE GMYO 16% 0.792 108 2.2% 2.1% - 20 TSKB GMYO 29% 0.709 104 - - - 21 REYSAŞ GMYO 31% 0.598 102 - 0.6% - 22 YEŞİL GMYO 24% 0.370 94 - - - 23 DENİZ GMYO 13% 1.480 86 24 ÖZDERİCİ GMYO 28% 0.150 84 - - - 25 AVRASYA GMYO 51% 1.881 60 - - - 26 YAPI KREDİ KORAY GMYO 44% 0.391 44 - - - 27 ATA GMYO 27% 0.015 39 - - - 28 MARTI GMYO 48% 0.177 39 - 5.4% 0.9% 29 PERA GMYO 51% 0.184 36 - - - 30 İDEALİST GMYO 25% 0.228 14 - - - TOTAL 37% 142.578 20,494 exc. EKGYO 25% 32.528 10,766 - - -
Source: Istanbul Stock Exchange
39 LISTED REIC’s - Torunlar REIC Performance
IPO Date (October 2010) = 100 April 2014: As of 01.04.2014
40 LISTED REIC’s – Torunlar REIC Foreign Shareholders
Fund Country BZ WBK TFI Poland Bank of New York Mellon USA Guardian Life Group USA Swedbank Robur Sweden Carnegie AM Denmark Blackrock USA 04.04.2014
ING Group The Netherlands JP Morgan AM USA Vanguard Group USA Schroders PLC USA
KBC Group The Netherlands FMR LLC Canada State Street Corp USA First Trust USA RS Investment Management USA Sompo JP Japan 31.03.2013 Carnegie Fund Management SA Denmark Dekabank Germany Prudential Financial USA Allianz USA Dimensial Fund USA Bessemer Group USA Flexshares Trust USA Source: Bloomberg
41 Contacts
Ismail KAZANC CFO [email protected]
Dr. Haluk YUKLER Investor Relations Director [email protected]
TORUNLAR REIC (Real Estate Investment Company) Ruzgarlibahce Mah. Selvi Cikmazi No.4 Kavacik 34805 Istanbul TURKEY Phone: +90 (216) 425 20 07 Fax: +90 (216) 425 59 57
Disclaimer
This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.
Neither Torunlar REIC nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.