INVESTOR PRESENTATION
ALARKO HOLDING A.Ş. TABLE OF CONTENTS
INTRODUCTION 1 CONTRACTING GROUP 14
ALARKO HOLDING SHAREHOLDER LAND DEVELOPMENT GROUP STRUCTURE & PARTICIPATION 2 ALARKO REIT 21
ALARKO HOLDING CONSOLIDATED INDUSTRY & TRADE GROUP REVENUE DISTRIBUTION 3 ALARKO CARRIER 25
ALARKO HOLDING CONSOLIDATED TOURISM GROUP IFRS FINANCIALS 5 31
ENERGY GROUP FINANCIAL STATEMENTS OVERVIEW 6 34
ENERGY GROUP APPENDIX ELECTRICITY GENERATION 7 38
ENERGY GROUP ELECTRICITY DISTRIBUTION 11 INTRODUCTION
ALARKO was founded in 1954 and today, operates in five main areas:
LAND ENERGY CONTRACTING INDUSTRY TOURISM DEVELOPMENT & TRADE
Three of the group companies are trading in Borsa Istanbul:
MARKET BIST BLOOMBERG FREE CAPITALIZATION NAME OF THE COMPANY SYMBOL SYMBOL FLOAT (US$ MILLION) as of November 12, 2018
Alarko Holding Inc. Alark Alark:TI 29,9% 157
Alarko Carrier Industry & Trade Alcar Alcar:TI 15,9% 83
Alarko Real Estate Investment Trust Algyo Algyo:TI 49,0% 107
1 SHAREHOLDER STRUCTURE & PARTICIPATIONS
ALATON 34,4% OTHER FAMILY SHAREHOLDERS FOUNDER HAVE 67,3% PARTICIPATION IN FAMILIES ALHAN HOLDING 2,0% GARİH 32.9% 0,7% DESTEK FOUNDATION FAMILY OTHER %0,1
CONSOLIDATION METHOD ALTEK (100%) ENERGY
ALCEN (50%) ENERGY
ALSIM (100%) CONTRACTING
ALARKO REIT (51%) LAND DEVELOPMENT
ALARKO CARRIER (43%) INDUSTRY&TRADE
ATTAS (100%) TOURISM
OTHERS: MEDAS, MEPAS, MESAS, CENAL, ALEN, ALDEM, ALFENAS, MOSALARKO, ALRIVA and others
FULL EQUITY 2 REVENUE DISTRIBUTION BY YEARS
TOURISM 6,4% TOURISM 5,3% 7,4% ENERGY INDUSTRY & 10,9% ENERGY INDUSTRY & 10,1% 10,4% GENERATION TRADE GENERATION TRADE
LAND 0,7% DEVELOPMENT LAND DEVELOPMENT 0,7% CONTRACTING 12,7% 61,0% CONTRACTING 15,3% 2015 58,6% 2016 ENERGY DISTRIBUTION ENERGY DISTRIBUTION
TOURISM 4,1% TOURISM 5,2% ENERGY INDUSTRY & 6,2% 10,9% TRADE 22,7% INDUSTRY & 10,1% GENERATION TRADE LAND 0,8% ENERGY DEVELOPMENT GENERATION LAND 16,2% 1,1% DEVELOPMENT CONTRACTING ENERGY 2018/ 2017 59,9% CONTRACTING 12,7% DISTRIBUTION 9M
ENERGY 50,1% DISTRIBUTION 3 net profıt by years
Alarko Holding Consolidated Net Profit (US$ MILLION) 140 M 120 M 100 M
80 M 86 60 M 60 52 40 M 43 20 M 36 33 33 26 15 0 M -20 M -40 M -43 -60 M -80 M -93
-100 M
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018/9M
4 CONSOLIDATED IFRS FINANCIALS
(US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 596 589 662 552
OPERATIONAL PROFIT 7,8 95 101 158
EBITDA 24 110 122 173
NET PROFIT -43 33 52 -93
EBITDA MARGIN (%) 4% 19% 18% 31%
CASH&FINANCIAL INV. (1) 220 244 242 183
FINANCIAL LIABILITIES (2) 359 576 682 632
NET CASH POSITION (1-2) -139 -332 -441 -449
* The summary financials figures above and on the following Energy, Contracting, Industry&Trade and Tourism group pages approximately represent the Alarko shares of all businesses, including equal share partnerships.
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 5 energy group - OVERVIEW
ALTEK – Kırklareli Combined Cycle Natural Gas Power Plant
ALTEK – Adana Karakuz Dam and Hydroelectric Power Plant
GENERATION ALTEK – Malatya Tohma Hidroelectric Power Plant
CENAL – Çanakkale Karabiga Imported Coal Fired Power Plant
PANEL ENERJİ – Solar Energy Generation Company
ALEN – Electricity Trading Company
TRADING MEPAŞ – Electricity Retail Sales Company
MESAŞ – Electricity Wholesale Company
DISTRIBUTION MEDAŞ – Electricity Distribution Company
ALARKO PARTNERSHIP
6 energy group - electrıcıty generatıon
KIRKLARELİ GAS FIRED COMBINED CYCLE POWER PLANT KIRKLARELİ – TURKEY
KARAKUZ HYDROELECTRIC POWER PLANT ADANA-TURKEY
7 ENERGY GROUP - ELECTRICITY GENERATION
The state’s privatization process of Turkish Energy Market is among the fastest 46 Power Plants with a total of 16.200 MW growing energy markets in the world capacity under EÜAŞ (Electricity Generation parallel to Turkey’seconomic growth. Company) started in 2009 and currently continues.
Total installed capacity is expected Demand for electricity is estimated to reach from the current to grow at an annual rate of 7,5% 86.000 MW level to 108.000 MW between 2013-2023. until 2021 to meet the demand. DRIVERS OF
According to EMRA’s Reserve GROWTH IN THE Energy Market Regulatory Authority Margin studies based on operates as an independent market Generation Capacity Projections ENERGY SECTOR regulator and the market is well of Turkey, energy deficit is organized and has a structured expected to start around 2017 and legal framework. continue in the following years.
High demand increase vs. The 6th largest energy market in Europe. developed economies: 4,6% per annum since 1990 (EU: 1,6%)
8 ENERGY GROUP - ELECTRICITY GENERATION The electricity generation company, ALTEK, which is a fully owned subsidiary of Alarko Holding, generates electrical energy, with 2 hydroelectric and 1 natural gas power plants, of total 171 MW generation capacity. ALCEN, our 50% - 50% energy JV company with Cengiz Group, has a total of 51 MW Solar PV (Photovoltaic) generation capacity. CENAL, our 50%-50% energy JV company with Cengiz Group, has a total of 1.320 MW imported coal fired generation capacity. The first unit of 660 MW started generation as of November 2017 and second 660 MW unit as of December 2017.
POWER PLANTS POWER (MW) STARTUP CONCESSION ALTEK LICENCE PERIOD
TOHMA/MALATYA HYDROELECTRIC (BOT) 12,5 1998 20 years
KIRKLARELİ NATURAL GAS 82 2006 49 years POWER PLANT
KARAKUZ HYDROELECTRIC 76 2015 49 years POWER PLANT TOTAL (ALTEK) 171
SOLAR PV POWER PLANTS ALCEN
ALCEN SUBSIDIARIES 51 2016 -
TOTAL (ALCEN SUBSIDIARIES) 51
IMPORTED COAL FIRED POWER PLANT CENAL ENERGY INC.
ÇANAKKALE-KARABİGA 1.320 2017 49 years
TOTAL 1.320 (CENAL ENERGY INC.) GRAND TOTAL 1.541
9 ENERGY GROUP - ELECTRICITY GENERATION
CENAL / KARABİGA: LOCATION: Import Coal Fired Power Plant KARABİGA/ÇANAKKALE
The first 660 MW unit started electricity generation and sales as of November 2017 and the second 660 MW unit started as of December 2017, reaching full capacity.
The construction of the total 1.320 MW Power Plant started in 2013.
The power plant is under Cenal Energy Generation Inc. which is a joint partnership (50%-50%) of Alarko Holding and Cengiz Group
The power plant is financed by 25% equity and 75% external debt, from 4 local banks.
Some of the source countries for imported coal are Australia, South Africa, Colombia and Indonesia.
The EIA (Environmental Impact Assesment) report which we had obtained in May 2012 has been revised and upgraded.
We obtained the Grid Connection Permit of TEİAŞ and we received the Generation License from EMRA as of April 2013.
10 energy group - ELECTRICITY DISTRIBUTION
Meram Electricity Distribution Region: Konya, Karaman, Kırşehir, Aksaray, Nevşehir and Niğde
KIRŞEHİR
AKSARAY NEVŞEHİR
KONYA NİĞDE
KARAMAN
11 energy group - ELECTRICITY DISTRIBUTION
Due to the liberalization of the energy sector in Turkey, Electricity Distribution companies (like Meram) were separated into Distribution and Retail Sales companies in the first quarter of 2013.
We took over Meram Electricity Distribution Co. The annual revenues of Meram are approximately as of 30.10.2009, by paying a USD 440Mn around USD 800 Mn. privatization value upfront.
Alarko Share is 50% and the remaining The retail sales net margin is 2,38%, 50% is owned by Cengiz Group. between the years 2016 – 2020.
Approximate sales distribution of The financing of the privatization has Meram by consumer segments is; been made by using approximately Industry: 29%, 30% equity and 70% debt. Housing: 28%, Commercial: 22%, Agricultural Irrigation: 18%, The loss & theft ratio of Lighting: 4%. Meram Region is approximately 7%, lower than the overall average in Meram buys electricity from the Turkey which is approximately 14%. TETAŞ (75%) and Spot Market (25%). (TETAŞ = State Electricity Trading Co., Spot Market = DUY System / Free Market) The licence period is 30 years, until August 2036. Annual energy consumption is approximately 7 billion kWh in Meram region covers 6 provinces in central anatolia; the region (net consumption). Konya, Karaman, Aksaray, Kırşehir, Nevşehir and Niğde, which is 76.935 square kilometers (larger than Holland). There are approximately 1,7 million electricity subscribers in the region.
:MERAM ELECTRICITY DISTRIBUTION COMPANY 12 energy group
CONSOLIDATED IFRS FINANCIALS* (US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 412 403 469 401 OPERATIONAL PROFIT 20 68 85 93
EBITDA 29 77 97 104
NET PROFIT -17 -15 47 -121
EBITDA MARGIN (%) 7% 19% 21% 26%
CASH&FINANCIAL INV. (1) 12 11 32 22
FINANCIAL LIABILITIES (2) 359 565 675 623
NET CASH POSITION (1-2) -347 -554 -643 -602
* The figures represent Energy Generation & Energy Distribution. Separate figures of Energy Generation, Energy Distribution and Energy Segment Break-Up are in Appendix 1,2&3.
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 13 CONTRACTING GROUP
IRTISH RIVER BRIDGE, SEMIPALATINSK-KAZAKHSTAN
KIEV-BORYSPIL AIRPORT, UKRAINE
ANKARA-ESKİŞEHİR FAST TRAIN PROJECT, TURKEY
14 CONTRACTING GROUP
Alarko’s contracting subsidiary ALSİM mainly focuses on large scale infrastructure projects with positive cash flow. 01.10.2018 The employers are mainly; central governments & local municipalities, other local and international institutions. TOTAL BACKLOG SUMMARY (US$ M)
Target DOMESTIC PROJECTS 437 EBITDA margin: 9-12%
INTERNATIONAL PROJECTS 555 Average 2-4 project completion years period: TOTAL 992 Strong track record in local and international projects such as subways, railroads, airports, highways, pipelines, refineries etc.
Details are on page 21
15 CONTRACTING GROUP - DOMESTIC BACKLOG
01.10.2018
CONTRACT ALARKO’S COMPLETION CONSTRUCTION BACKLOG PARTNERS LOCATION SIZE PROJECTS PORTION % % PERIOD (US$ MILLION) (US$ MILLION)
LEVENT-AYAZAĞA SUBWAY PROJ. ALARKO- İSTANBUL Electromechanic Works MAKYOL 490 50 98,54 2008 - 2018 4
KABATAŞ-MECİDİYEKÖY Mahmutbey Subway Project ALARKO İSTANBUL 415 100 49,93 2015 - 2018 208
ANKARA SUBWAY PROJECT Additional Electromechanic ALARKO ANKARA 47 100 86,90 2016 - 2019 6 Works
KAYNARCA - PENDİK - TUZLA SUBWAY PROJECT ALARKO- Line, Supply, Install and İSTANBUL 438 50 0,00 2017 - 2020 219 Commissioning Works of CENGİZ Civil and Electromechanical Systems
TOTAL DOMESTIC PROJECTS UNDER EXECUTION 437 (US$ MN) 1.390
ALARKO’S PORTION (US$ MN) 926
16 CONTRACTING GROUP - INTERNATIONAL BACKLOG
CONTRACT PARTNERS LOCATION SIZE ALARKO’S COMPLETION CONSTRUCTION BACKLOG PROJECTS (US$ MILLION) (US $ MILLION) PORTION % % PERIOD 01.10.2018
CONSTRUCTION AND OPERATION OF THE MOTOR ROAD “BIG ALMATY RING ROAD" ALARKO- (BAKAD) MAKYOL- KAZAKHSTAN 1.663 33,40 0,00 2018-2038 555 Build-Transfer-Operate (BTO) Public-Private Partnership (PPP) SK-KEC
TOTAL INTERNATIONAL PROJECTS UNDER EXECUTION 1.663 555 (US$ MN)
ALARKO’S PORTION (US$ MN) 555
17 CONTRACTING GROUP
Construction &Operation of Motor 2 SUBWAY TURKEY Road PPP Project 44% 56% KAZAKHSTAN 44%
56%
CURRENT BACKLOG BREAKDOWN CURRENT BACKLOG BREAKDOWN BY COUNTRY BY PROJECT CATEGORY
18 CONTRACTING GROUP
CONSOLIDATED IFRS FINANCIALS* (US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 80 94 91 94
OPERATIONAL PROFIT 2,4 37 34 51
EBITDA 6,5 41 38 54
NET PROFIT 2,9 67 30 43
EBITDA MARGIN (%) 8 44% 42% 57%
CASH&FINANCIAL INV. (1) 116 169 149 119
FINANCIAL LIABILITIES (2) - 11 8 4
NET CASH POSITION (1-2) 116 158 141 114
* The financials above include Land Development. Contracting&Land Development Break-Up is in Appendix 4.
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 19 DOMESTIC Tarabya Presidency Complex Atasehir Satellite Town Alkent 2000 Süleyman Demirel UniversityHospital Housing, BusinessCenters, Hotels&Hospitals Antalya LightRailProject Samsun LightRailProject Adana RailSystemProject Ankara-Eskisehir FastTrainProject Taksim YenikapıSubwayProject Levent HisarüstüSubwayProject Levent AyazağaSubwayProject Sabiha GökçenInternationalAirport International Airport Ankara SubwayProject Transportation Projects Hyundai CarFactory Alarko CarrierFactory Turnkey IndustrialPlants Tüpras PetroleumStorageTanks Karakuz HydroelectricPowerPlant Kırklareli CombinedCycleNaturalGasPowerPlants(I-II) Hasanlar, TohmaandBerdanHydroelectricPowerPlants Natural GasDistributionNetwork Natural GasPipeline Melen-Düzce WaterProject İzmit BayW.W.TreatmentPlant Yarımca PetroleumRefineryW.W.TreatmentPlant Tuzla BiologicalW.W.TreatmentPlant Water &Waste(W.W.),TreatmentPlants Tüpras İzmirandKocaeliRefinaryProjects Petro -PetrochemicalPlants&Refineries Power Plants Gas &Pipelines C O NTR AC TIN G R Düzce, Tarsus&Malatya Ankara-Eskişehir İstanbul &Bursa OUP -MAJORCOMPLETEDPROJECTS İzmit &Kocaeli Kırklareli Antalya İstanbul İstanbul İstanbul İstanbul İstanbul İstanbul İstanbul İstanbul Samsun Samsun Erzurum Kocaeli Ankara Adana Adana Isparta Gebze İzmit İzmit İzmit İzmir
INTERNATIONAL Water &Waste(W.W.),TreatmentPlants Chezkazgan Hospital Complex WK Verwaltungs HotelConstruction Tverskaya Business &ShoppingCenter, Marksistkaya BusinessCenter Housing, BusinessCenters, Hotels&Hospitals Atyrau-Aktau RoadProject Irtish RiverBridge Almaty -BishkekRoadRehabilitation Aktobe -KostanaiHighwayRehabilitation Astana InternationalAirport Ashkhabad InternationalAirport Urgench InternationalAirportModernizationProject Samarkand InternationalAirport Modernization Project Bukhara InternationalAirportModernizationProject Kiev BoryspilAirport Transportation Projects Goznak BanknotePlant British AmericanTobaccoFactory Phillip MorrisCigaretteFactory Bozshakol CopperOrePlant Turnkey IndustrialPlants Polypropylene Plant Crude OilPipelineLot-BPackage Gas &Pipelines Taldykol SewerPondLiquidation-1st,2nd&4thStages Astana WaterDistribution&SewerageProject Oran Arzew IndustrialZoneDesalination&Power Plant Petro -PetrochemicalPlants&Refineries Moscow /Russia Moscow /Russia Baku-Tbilisi-Ceyhan Turkmenistan Turkmenistan Kazakhstan Kazakhstan Kazakhstan Kazakhstan Kazakhstan Kazakhstan Kazakhstan Kazakhstan Kazakhstan Kazakhstan Uzbekistan Uzbekistan Uzbekistan Uzbekistan Germany Ukraine Algeria Russia 20 LAND DEVELOPMENT GROUP
“ALKENT İSTANBUL 2000” Büyükçekmece, İstanbul-TURKEY
21 LAND DEVELOPMENT GROUP
The Land Development Group;
Designs and builds high-quality residential communities, mainly targeting upper-middle income clients.
Negotiates the contracts with landowners on a revenue or profit-sharing basis.
Pre-sells the units before commencing construction.
ALARKO MOS ALARKO REAL ESTATE (MARKSISTKAYA INVESTMENT TRUST BUSINESS CENTER) (ALARKO REIT) RUSSIA
Is the first REIT IPO in Turkey (1997) and is a A business complex in Moscow city center, tax-exempt company. built jointly (50%-50%) with the Municipality of Moscow in 1999. Generates rental revenue, approximately US$ 5 – 5,5 million per year. 10% of the building is sold to Ziraat Bank, and the remaining part is being leased to various Has completed the development and sales international companies. Total leasable area of 63 Lake Mansions in Büyükçekmece is 6.000 sqm, and generates US$ 3,5 million as of 2017. rental revenue per year.
22 LAND DEVELOPMENT GROUP
PORTFOLIO VALUE OF ALARKO REIT (US$ MILLION) 31.12.2017 30.09.2018
CASH AND MARKETABLE SECURITIES 101,76 103,22
REAL ESTATE PORTFOLIO 154,73 102,76
Land in Maslak, İstanbul 21,67 14,69
Land in Eskice Village, Büyükçekmece - İstanbul 17,63 12,07
Alarko Business Center (Karaköy - İstanbul) 2,84 1,95
Alarko Business Center (Ankara) 1,83 1,25
Alarko Business Center (Şişhane - İstanbul) 2,36 1,59
Hillside Beach Club Holiday Village - Fethiye 81,13 53,17
Factory Building - Eyüp - İstanbul 17,21 11,27
Shops in Etiler - Alkent - İstanbul 7,49 5,02
Shops in Büyükçekmece - Alkent 2000 - İstanbul 2,58 1,75
TOTAL PORTFOLIO (US$ MILLION) 256,49 205,97 TOTAL PORTFOLIO (TL MILLION) 967,44 1,233,82
TL/US$ EXCHANGE RATE 3,77 5,99 23 ALARKO REIT IFRS FINANCIALS
IFRS FINANCIALS* (US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 7,2 6,8 10,8 5,1
OPERATIONAL PROFIT 45,3 37,8 40,3 47,9
EBITDA 45,3 37,8 40,4 47,9
NET PROFIT 45,3 37,9 40,4 47,9
EBITDA MARGIN (%) 627% 559% 372% 945%
CASH&FINANCIAL INV. (1) 87 93 102 102
FINANCIAL LIABILITIES (2) - - - -
NET CASH POSITION (1-2) 87 93 102 102
* The financials above are the solo figures of Alarko REIT company
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 24 INDUSTRY & TRADE GROUP
25 INDUSTRY & TRADE GROUP
Formed an equal-share partnership Is a major heating & cooling with Carrier in 1998, a subsidiary of products manufacturer, United Technology Corporation-USA. with two production plants in Istanbul.
United Technology Corporation trades in the New York Stock Alarko Carrier is a solid HVAC Exchange (Symbol: UTX). company with stable revenue Business units under United generation ability. Technologyy Corporation are; Carrier, Pratt&Whitney, Otis, UTC Fire&Security and Hamilton Sunstrand. Has Marketing & Sales offices in 5 major cities; İstanbul, Ankara, İzmir, Adana and Antalya. Has approximately 300 dealers and 300 technical after-sale services.
SALES BREAKDOWN CHARTS SALES FROM IMPORTED PRODUCTS DIRECT SALES
45% 50% 50% 55%
SALES FROM DOMESTICALLY MANUFACTURED PRODUCTS SALES THROUGH DEALERS
26 INDUSTRY & TRADE GROUP
Centralized Heating and Cooling Systems MAJOR Panel Radiators, Air Handling Units, Panel Radiators EXPORT Gas and Oil Burners, Roof Top AC Units Gas and Oil Burners PRODUCTS MAJOR Boilers & Circulation Pumps PRODUCTS Split AC Units Air Handling Units UK, Germany, Greece, The Netherlands, MAJOR Roof Top AC Units Russia, Azerbaijan, Romania, UAE, France, EXPORT Submersible Pumps and Italy, Spain, Australia, Belgium, Kazakhstan MARKETS Motors (TOTAL 51 COUNTRIES) Water Boosters
SALES BREAKDOWN BY PRODUCT CATEGORIES
Aftermarkets Heating Residential AC Commercial AC Pumps Parts, systems 19% of sales 37% of sales 3% of sales Maintenance 25% of sales 16% of sales
Hi-walls Chillers Wall-hung Submersible Ducted Roof top units boilers pumps Floor/ceiling AHU/fan coils Burners Pump motors VRF Radiators Water boosters Non-Carriers + BMS/Controls
27 INDUSTRY & TRADE GROUP
Achieving Competitive Excellence The United Technologies Operating System
2005 2008 2009 2010 2011 2012 2016
Coaching, Trying the tools; Significantly Best-in-class, Teaching & getting some improving year-over-year Baselining results business metrics business metrics improvements
STANDARDIZATION & CERTIFICATION
28 INDUSTRY & TRADE GROUP
CONSOLIDATED IFRS FINANCIALS (US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 65 60 67 34
OPERATIONAL PROFIT 6,8 4,8 7,5 5,7
EBITDA 7,8 5,5 8,3 6,1
NET PROFIT 5,9 4,7 5,9 3,5
EBITDA MARGIN (%) 12% 9% 13% 18%
CASH&FINANCIAL INV. (1) 19 13 9 6
FINANCIAL LIABILITIES (2) - - - 4
NET CASH POSITION (1-2) 19 13 9 2
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 29 INDUSTRY & TRADE GROUP
MAIN COMPETITORS
Baymak / BDR (Holland) ECA HEATING Türk Demir Döküm (subsidiary of Vaillant) MARKET SHARES IN TURKEY Vaillant (Germany)
Arçelik Vestel AIR Daikin (Japan) CONDITIONING Johnson Controls / York Trane (USA) 9,3% 9,0%
4,4%
Grundfoss (Danmark) PUMPS Wilo (Germany) HEATING AC PUMPS PRODUCTS
30 TOURISM GROUP
HILLSIDE BEACH CLUB FETHİYE-TURKEY
HILLSIDE CITY CLUB ETİLER, İSTANBUL-TURKEY
CINECITY İSTANBUL-TURKEY
HILLSIDE CITY CLUB İSTANBUL-TURKEY
31 TOURISM GROUP
- First-class holiday village SPORTS AND RECREATION CENTERS - Located in south-west of Turkey, in Fethiye - Hillside City Club/ Etiler in İstanbul
The Tourism Group, ATTAŞ, owns and operates - 330 rooms/781 bed capacity The services offered include: city clubs and hotels in Turkey, under the brand - Basketball, Tennis, Squash, name hillside, and targets to grow in leisure - Managed by the Tourism Group Racquetball facilities - Swimming pools sector. since 1994 - Kids Club, Restaurants & Cafes, etc. Main Activities: - Rate of occupancy: 82% in 2016 and 87% in 2017 Management of;
Holiday villages and hotels, Sports, recreation centers, Movie theaters, SPAs
MOVIE THEATERS SPAs
- In Istanbul and Izmir, in -First SPA chain in Turkey with 3 different locations 3 different locations (including Hillside City (1 in istanbul and 2 in Fethiye) Club)
- Total of 20 movie theaters
32 TOURISM GROUP
CONSOLIDATED IFRS FINANCIALS (US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 38 31 34 23
OPERATIONAL PROFIT 2,3 0,4 1,6 5,9
EBITDA 4,5 2,3 3,7 6,8
NET PROFIT 1,8 0,2 1,2 4,1
EBITDA MARGIN (%) 12% 7% 11% 30%
CASH&FINANCIAL INV. (1) 11 6,9 10 11,5
FINANCIAL LIABILITIES (2) 0,2 - - -
NET CASH POSITION (1-2) 10,8 6,9 10 11,5
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 33 ALARKO HOLDING CONSOLIDATED BALANCE SHEET AS OF 30.09.2018 (USD) ASSETS LIABILITIES AND SHAREHOLDERS’ EQUITY SHORT TERM LIABILITIES 135.456.954 CURRENT ASSETS 249.697.675 A. Short Term Borrowings 14.810.784 A. Cash and Cash Equivalents 85.107.813 B. Short Term Portions of Long Term Borrowings 15.977.772 B. Financial Investments 72.925.101 C. Trade Payables 48.302.264 C. Trade Receivables 21.181.540 - Trade Payables to Related Parties 5.492.272 - Trade Receivables from Related Parties 7.726.446 - Trade Payables to Non-Related Parties 42.809.992 - Trade Receivables from Non-Related Parties 13.455.094 D.Payables related to Benefits Provided to Employees 1.351.241 D. Other Receivables 5.987.059 E. Other Payables 1.710.365 - Other Receivables from Related Parties 5.793.217 - Other Payables to Related Parties 683.525 - Other Receivables from Non-Related Parties 193.842 - Other Payables to Non-Related Parties 1.026.840 E. Receivables from continuing Construction, Contracting F. Payables from continuing Construction, Contracting and Service Contracts 1.390.266 and Service Contracts 2.141.985 - Receivables from continuing Construction, Contracting - Payables from continuing Construction, Contracting and Service Contracts from Non-Related Parties 1.390.266 and Service Contracts to Non-Related Parties 2.141.985 F. Derivative Instruments 0 G. Derivative Instruments 29.945 G. Inventories 36.553.362 H. Deferred Revenues 45.209.455 H. Expenses paid in Advance 9.324.382 I. Period Profit Tax Liability 4.871.458 I. Assets related to current period tax 2.033.151 J. Short Term Provisions 1.051.607 J.Othe r Current Assets 5.919.518 - Other Short Term Provisions 1.051.607 K. Interim Sum 240.422.192 J. Other Short Term Liabilities 78 L. Long Term Assets held for Sale Purpose 9.275.483 LONG TERM LIABILITIES 112.330.267 A. Long Term Borrowings 39.456.974 B. Other Payables 8.963.522 - Other Payables to Related Parties 0 LONG TERM ASSETS 225.933.468 - Other Payables to Non-Related Parties 8.963.522 A. Financial Investments 32.328.729 C. Liabilities from Investments Evaluated by Equity Pick-Up Method 30.427.275 B. Trade Receivables 5.221 D. Deferred Revenues 4.402.071 - Trade Receivables from Non-Related Parties 5.221 E. Long Term Provisions 3.529.160 C. Other Receivables 2.466.577 - Long Term Provisions for Benefits Provided to Employees 3.529.160 - Other Receivables from Non-Related Parties 2.466.577 F. Deferred Tax Liabilities 25.551.265 D. Investments Evaluated by Equity Pick-Up Method 29.195.354 SHAREHOLDERS’ EQUITY 227.843.924 E. Investment Real Estate Properties 63.365.116 Shareholders Equity from Majority Interest 147.297.795417.202.645 F. Tangible Assets 78.363.944 A. Paid In Capital 72.618.610 G. Intangible Assets 3.761.660 B. Mutual Interest Capital Adjustment -131.717 - Goodwill 974.049 C. Accumulated other Extensive Revenues of Expenses - Other Long Term Intangible Assets 2.787.612 that will not be Reclassified as Profit or Loss -951.364 H. Expenses paid in Advance 311.279 - Profit/Losses from Revaluation Profit or Losses -951.364 I. Deferred Tax Assets 9.003.448 - Defined Benefit Plans Revaluation Profit or Losses -951.364 J. Other Long Term Assets 7.132.140 D. Accumulated other Extensive Revenues of Expenses that will be Reclassifies as Profit or Loss 20.645.767 TOTAL ASSETS 475.631.143 - Translation Differences 13.988.849 - Profit/Losses from Risk Protection 6.686.417 - Profit/Loss from Revaluation and Classification -29.499 - Realistic Value Difference Profit (Losses) from Financial Assets reflected to Other Extensive Revenues -29.499 E. Restricted Reserves Allocated from Profits 2.686.101 F. Retained Earnings 145.112.386 G. Net Profit/Loss For The Period -92.681.988 34 DEBT TO EQUITY RATIO 1,09 CURRENT RATIO 1,84 Minority Interest 80.546.129 TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY 475.631.143 ALARKO HOLDING STATEMENT OF INCOME ACCORDING TO GROUP OF COMPANIES AS OF 30.09.2018 (USD)
INDUSTRY CONTRACTING CONTINUED OPERATIONS HOLDING TOURISM &TRADE ENERGY & LAND DEV. ELIMINATION TOTAL
Income From Sales (Out of Group net) 834.091 22.748.343 - 22.736.550 93.110.117 - 139.429.101
Income From Sales (In Group net) 1.083.639 4.678 - 11.145.739 2.757.876 (14.991.933) -
Cost of Sales (Out of Group) (-) (520.528) (11.293.282) - (15.626.955) (86.585.701) (200.017) (114.226.483)
Cost of Sales (In Group) (-) (1.352.436) (140.109) - (12.329.396) (581.996) 14.403.013 -
GROSS PROFIT/LOSS 44.766 11.319.630 - 5.925.937 8.700.297 (788.013) 25.202.619
General Management Expenses (-) (575.653) (8.254.031) (5.383) (1.141.048) (7.485.283) 2.367.007 (15.094.391)
Marketing, Sales & Distribution Expenses (-) - (1.484.799) - - - - (1.484.799)
Other Operating Income 2.358.794 6.246.906 14.546 1.986.837 68.487.197 (1.216.875) 77.877.406
Other Operating Expenses (-) (172.543) (1.926.706) - (174.555) (17.904.475) 508.078 (19.670.202)
OPERATIONAL PROFIT/(LOSS) 1.655.364 5.901.000 9.163 6.597.172 51.797.736 870.198 66.830.634
Investment Income 8.119.120(212.674) (212.674)50.347 (212.674)1.818 5.887.17052.8211 6.669.406(212.674) (8.401.104)(212.674) 6.492.409(212.674) Investment Expenses (-) (26.325) (518.719) - - (1.222.627) - (1.767.671)
Shares in Profit/Loss of Investments - - 3.518.950 (109.252.489) (462.853) (1.339.491) (107.535.883) Evaluated by Equity Pick-Up Method
PROFIT/(LOSS) BEFORE FINANCIAL EXPENSES 9.748.159 5.432.628 3.529.931 (102.602.495) 56.781.662 (8.870.397) (35.980.513) ------Financial Income ------
Financial Expenses (-) - (228.374) (70) (20.980.410) - - (21.208.853)
CONTINUED OPERATIONS PRE-TAX PROFIT/(LOSS) 9.748.159- 5.204.254- 3.529.862- (123.582.905)- 56.781.662- (8.870.397)- (57.189.366)-
Financial- Period Tax Expenses Income/(Expense) (-) (888.468)- (1.131.383)- - (300.677)- (4.440.009)- 133.013- (6.627.525)-
- Deferred Tax Income/(Expense) (113.263) (14.188) (4.688) 2.988.145 (9.014.219) (40.632) (6.198.846)
Continued Operations Tax Income/(Expense) (1.001.731) (1.145.571) (4.688) 2.687.467 (13.454.228) 92.380 (12.826.370)
CONTINUED OPERATIONS AFTER-TAX PROFIT/(LOSS) 8.746.427 4.058.684 3.525.174 (120.895.438) 43.327.434 (8.778.017) (70.015.736)
PERIOD PROFIT/(LOSS) 8.746.427 4.058.684 3.525.174 (120.895.438) 43.327.434 (8.778.017) (70.015.736)
MINORITY INTEREST - - - - - 22.666.252 22.666.252
NET PROFIT 8.746.427 4.058.684 3.525.174 (120.895.438) 43.327.434 (31.444.269) (92.681.988)
EBITDA MARGIN % 205% 30% 18% 26% 57% - 31%
35 ALARKO HOLDING STATEMENT OF INCOME ACCORDING TO GROUP OF COMPANIES AS OF 31.12.2017 (USD)
INDUSTRY CONTRACTING CONTINUED OPERATIONS HOLDING TOURISM &TRADE ENERGY & LAND DEV. ELIMINATION TOTAL
Income From Sales (Out of Group net) 994.622 34.322.719 - 55.194.728 89.933.745 - 180.445.813
Income From Sales (In Group net) 2.097.610 13.058 - 14.907.166 5.917.844 (22.935.679) -
Cost of Sales (Out of Group) (-) (336.206) (20.318.946) - (44.197.582) (82.931.231) (682.752) (148.466.717)
Cost of Sales (In Group) (-) (2.606.961) (238.428) - (13.686.263) (1.949.396) 18.481.048 -
GROSS PROFIT/LOSS 149.065 13.778.403 - 12.218.048 10.970.962 (5.137.382) 31.979.096
General Management Expenses (-) (1.102.232) (11.828.355) (9.199) (2.338.654) (13.849.056) 4.898.955 (24.228.541)
Marketing, Sales & Distribution Expenses (-) - (2.758.546) - - - - (2.758.546)
Other Operating Income 2.295.368 2.988.233 7.829 1.626.452 56.753.979 (26.001.044) 37.670.817
Other Operating Expenses (-) (582.960) (558.890) - (592.516) (18.698.113) (467.091) (20.899.571)
OPERATIONAL PROFIT/(LOSS) 759.241 1.620.846 (1.370) 10.913.330 35.177.772 (26.706.563) 21.763.256
Investment Income 19.060.560(212.674) (212.674)135.090 (212.674)915 5.887.17096.9861 1.863.102(212.674) (16.103.248)(212.674) 5.053.404(212.674) Investment Expenses (-) - (28.028) - (9.020.824) (1.183.041) (1.540.101) (11.771.994)
Shares in Profit/Loss of Investments - - 5.930.894 54.262.664 (1.721.393) 1.522.785 59.994.948 Evaluated by Equity Pick-Up Method
PROFIT/(LOSS) BEFORE FINANCIAL EXPENSES 19.819.801 1.727.908 5.930.439 56.252.156 34.136.439 (42.827.127) 75.039.615 ------Financial Income ------
Financial Expenses (-) - (273.334) (139) (11.826.633) - 241.361 (11.858.745)
CONTINUED OPERATIONS PRE-TAX PROFIT/(LOSS) 19.819.801- 1.454.574- 5.930.300- 44.425.523- 34.136.439- (42.585.766)- 63.180.870-
Financial- Period Tax Expenses Income/(Expense) (-) (1.241.136)- (296.996)- - (79.668)- (541.174)- - (2.158.975)-
- Deferred Tax Income/(Expense) 15.641 13.965 85 2.172.655 (3.356.030) (4.128) (1.157.811)
Continued Operations Tax Income/(Expense) (1.225.495) (283.031) 85 2.092.987 (3.897.204) (4.128) (3.316.786)
CONTINUED OPERATIONS AFTER-TAX PROFIT/(LOSS) 18.594.306 1.171.543 5.930.385 46.518.510 30.239.235 (42.589.894) 59.864.084
PERIOD PROFIT/(LOSS) 18.596.306 1.171.543 5.930.385 46.518.510 30.239.235 (42.589.894) 59.864.084
MINORITY INTEREST - - - - - 7.395.342 7.395.342
NET PROFIT 18.594.306 1.171.543 5.930.385 46.518.510 30.239.235 (49.985.236) 52.468.742
EBITDA MARGIN % - 11% 13% 21% 42% - 18%
36 ALARKOALARKO HOLDINGHOLDING STATEMENTSTATEMENT OFOF INCOMEINCOME AACCORDINGCCORDING TTOO GGROUPROUP OOFF CCOMPANIESOMPANIES AASS OOFF 31.1231.12.2016.2016 (USD)(USD)
INDUSTRY CONTRACTING CONTINUED OPERATIONS HOLDING TOURISM &TRADE ENERGY & LAND DEV. ELIMINATION TOTAL
Income From Sales (Out of Group net) 1.060.264 30.994.227 - 43.356.189 92.498.295 - 167.908.974
Income From Sales (In Group net) 2.209.826 852 - 14.163.013 5.257.022 (21.630.713) -
Cost of Sales (Out of Group) (-) (477.990) (19.392.370) - (43.139.161) (94.050.492) (723.979) (157.783.992)
Cost of Sales (In Group) (-) (2.642.391) (253.840) - (13.042.561) (1.734.496) 17.673.288 -
GROSS PROFIT/LOSS 149.708 11.348.869 - 1.337.480 1.970.329 (4.681.405) 10.124.982
General Management Expenses (-) (1.059.851) (10.804.139) (21.983) (2.036.482) (11.990.257) 4.006.709 (21.906.003)
Marketing, Sales & Distribution Expenses (-) - (2.414.948) - - - - (2.414.948)
Other Operating Income 3.928.815 2.833.445 19.019 2.160.674 62.037.908 (16.992.090) 53.987.772
Other Operating Expenses (-) (1.080.080) (526.625) - (751.279) (14.948.470) 249.707 (17.056.747)
OPERATIONAL PROFIT/(LOSS) 1.938.592 436.603 (2.964) 710.393 37.069.509 (17.417.078) 22.735.056
Investment Income 9.710.699(212.674) (212.674)19.851 (212.674)3.069 (212.674)142.511 37.993.588(212.674) (8.479.140)(212.674) 39.390.578(212.674) Investment Expenses (-) - (2.967) - (20.971) (142.369) 34.754 (131.553)
Shares in Profit/Loss of Investments - - 4.674.022 (3.165.132) 5.529.878 1.846.645 8.885.413 Evaluated by Equity Pick-Up Method
PROFIT/(LOSS) BEFORE FINANCIAL EXPENSES 11.649.291 453.487 4.674.127 (2.333.199) 80.450.607 (24.014.819) 70.879.494 ------Financial Income - - - 5.660 - - 5.660
Financial Expenses (-) - (198.688) (323) (15.411.632) (500) 163.523 (15.447.620)
CONTINUED OPERATIONS PRE-TAX PROFIT/(LOSS) 11.649.291- 254.799- 4.673.804- (17.739.171)- 80.450.107- (23.851.296)- 55.437.534-
Financial- Period Tax Expenses Income/(Expense) (-) (1.077.733)- (57.829)- -- (187.613)- (9.846.753)- -- (11.169.927)-
- Deferred Tax Income/(Expense) (4.016) 12.023 420 2.653.632 (3.650.256) (238.572) (1.226.769)
Continued Operations Tax Income/(Expense) (1.081.749) (45.806) 420 2.466.019 (13.497.009) (238.572) (12.396.697)
CONTINUED OPERATIONS AFTER-TAX PROFIT/(LOSS) 10.567.542 208.993 4.674.225 (15.273.152) 66.953.098 (24.089.868) 43.040.837 DISCONTINUED OPERATIONS AFTER-TAX PERIOD PROFIT/(LOSS) ------PERIOD PROFIT/(LOSS) 10.567.542 208.993 4.674.225 (15.273.152) 66.953.098 (24.089.868) 43.040.837
MINORITY INTEREST - - - - - 10.214.986 10.214.986
NET PROFIT 10.567.542 208.993 4.674.225 (15.273.152) 66.953.098 (34.304.855) 32.825.851
EBITDA MARGIN % 189% 7% 9% 19% 44% - 19% 37 APPENDIX 1 - ENERGY GROUP CONSOLIDATION GENERATION (US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 62,2 43,8 72,1 125,0
OPERATIONAL PROFIT -5,8 -0,3 17,6 23,4
EBITDA 0,5 6,4 28,2 33,0
NET PROFIT -19,7 -40,6 -2,3 -164,3
EBITDA MARGIN (%) 0,9% 14,6% 39,1% 26,4%
CASH&FINANCIAL INV. (1) 7,3 7,9 6,4 6,5
FINANCIAL LIABILITIES (2) 316,5 534,0 651,5 607,3
NET CASH POSITION (1-2) -309,2 -526,1 -645,1 -600,8
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 38 APPENDIX 2 - ENERGY GROUP CONSOLIDATION DISTRIBUTION (US$ MILLION)
SELECTED FIGURES 31.12.2015 31.12.2016 31.12.2017 30.09.2018
REVENUES 349,7 359,6 396,7 276,3
OPERATIONAL PROFIT 25,6 68,5 67,0 69,5
EBITDA 28,4 70,6 69,2 70,9
NET PROFIT 3,1 25,3 48,9 43,4
EBITDA MARGIN (%) 8,1% 19,6% 17,5% 25,6%
CASH&FINANCIAL INV. (1) 4,4 3,5 25,3 15,4
FINANCIAL LIABILITIES (2) 42,2 31,6 23,2 16,1
NET CASH POSITION (1-2) -37,8 -28,1 2,1 -0,8
TL/US$ EXCHANGE RATE 2,91 3,52 3,77 5,99 39 APPENDIX 3 - ENERGY GROUP CONSOLİDATION ENERGY SEGMENT BREAK-UP (US$ MILLION) 2018/9M
ALTEK CENAL ALARKO MEDAŞ MEPAŞ MESAŞ ALCEN ALEN ALCEN SOLAR ENERGY CONSOLIDATED FIGURES ENERJİ SUBSIDIARIES TOTAL
REVENUES 21 102 0 38 209 11 17 1 0 401
OPERATIONAL PROFIT 5,1 16,0 1,6 40,0 30,3 -2,2 1,4 -0,1 0,8 93
EBITDA 7,8 22,2 1,6 41,0 30,6 -2,2 1,5 -0,1 1,5 104
NET PROFIT -12,9 -140,3 1,3 30,0 31,0 -2,5 -15,1 -0,1 -12,4 -121
EBITDA MARGIN (%) 36 22 - 107 15 - 9 - - 26
2017
ALTEK CENAL ALARKO MEDAŞ MEPAŞ MESAŞ ALCEN ALEN ALCEN SOLAR ENERGY CONSOLIDATED FIGURES ENERJİ SUBSIDIARIES TOTAL
REVENUES 37 17 0 80 229 25 62 18 0 469
OPERATIONAL PROFIT 11,3 2,9 0,4 46,8 9,0 1,1 10,0 -0,8 3,8 85
EBITDA 18 5,2 0,4 49,0 9,0 1,1 10,1 -0,8 5,0 97
NET PROFIT -7,6 5,8 0,4 35,8 6,5 0,9 5,7 -0,6 -0,4 47
EBITDA MARGIN (%) 50 31 - 61 4 4 16 - - 21
* The figures represent Alarko Holding shares. 40 APPENDIX 4 - CONTRACTING GROUP CONTRACTING & LAND DEVELOPMENT BREAK-UP (US$ MILLION) 2018/9M
LAND CONTRACTING & LAND CONSOLIDATED FIGURES CONTRACTING DEVELOPMENT DEVELOPMENT TOTAL REVENUES 89,3 4,4 93,6
OPERATIONAL PROFIT 7,4 43,9 51,3
EBITDA 9,5 44,1 53,6
NET PROFIT -4,8 48,1 43,3
EBITDA MARGIN (%) 11 1,007 57
2017
LAND CONTRACTING & LAND CONSOLIDATED FIGURES CONTRACTING DEVELOPMENT DEVELOPMENT TOTAL REVENUES 83,8 7,5 91,4
OPERATIONAL PROFIT -7,3 40,8 33,6
EBITDA -3,5 41,4 37,9
NET PROFIT -10,5 40,8 30,2
EBITDA MARGIN (%) - 552 42 41 APPENDIX 5 - CONTRACTING GROUP
MAIN JV PARTNERS - GLOBAL CONSTRUCTION GROUPS
EBARA STRABAG SIEMENS MARUBENI HYUNDAI CORPORATION Germany Germany Japan Korea Japan
GS ENG.&CONST. ANSALDO ASTALDI IMPREGILO BOMBARDIER CORP. - Korea Italy Italy Italy Canada
DEGREMONT CAF TECNICAS OHL France Spain REUNIDAS - Spain Spain
MAIN COMPETITORS
DOMESTIC global
ENKA YAPI MERKEZİ J&P L.L.C. - Oman TODINI - Italy IMPREGILO - Italy
GAMA DOĞUS SALINI - Italy ASTALDI - Italy BECHTEL - USA
TEKFEN YÜKSEL OHL - Spain HOCHTIEF - Germany STRABAG - Austria
CONSOLIDATED NUROL LARSEN & TOUBRO - India CONTRACTORS - Greece
42 APPENDIX 6 - TOURISM GROUP
TURKISH TOURISM SECTOR (US$ Billion) (Million Visitors)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tourism Revenues (left axis) Tourist Arrivals (right axis)
43 ALARKO HOLDING DISCLAIMER
Alarko 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’s management. Neither the Company nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation. This Presentation does not constitute an offer or invitation to purchase the securities of the Company. Investors and prospective investors interested in the securities of the Company are required to conduct their own independent investigations and appraisal of the business, financial condition of the Company and the nature of its securities. Except for the historical information contained herein, the statements made in this Presentation with respect to the Company’s plans, strategies, beliefs and other prospective matters are forward-looking statements that involve risk and uncertainty that are not under the Company’s control which may cause actual results to differ materially from those anticipated. Except where otherwise indicated, this Presentation speaks as of the date hereof. We undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. CORPORATE COMMUNICATION
Ömer ÇELİK Senior Vice President Finance & IR [email protected] Tel: +90 (212) 310 34 10
Bener DAĞLIER Finance Manager [email protected] Tel: +90 (212) 310 34 16
For Further Information: www.alarko.com.tr [email protected] www.alarko.com.tr