01.01.2012 - 31.03.2012 financial & operational …...2012 january – march financial results...

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01.01.2012 - 31.03.2012Financial & Operational

Highlights

2012 January – March Financial Results

Detailed Information by Operating Segments

Contracting Group

Agri – Industry Group

Real Estate Development Group

Stock Performance

2

Content

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Contracting Group



Stock Performance

Content

Basic Balance Sheet Items (Million TRY) 31 Dec 11 31 Mar 12 Change (%)**Total Assets 3.748 3.945 5▲Shareholders' Equity 1.888 1.992 6▲

Basic Income Statement Items (Million TRY) 01 Jan -

31 Mar 1101 Jan-

31 Mar 12 Change (%)Revenues 690 1.023 48▲Gross Profit 130 133 2▲EBITDA* 94 99 6▲Operating Profit 79 82 4▲Income Before Tax 97 112 15▲Net Profit for the Period 76 92 21▲

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Main Financial Indicators

* Earnings before interest, tax, depreciation and amortization** In this presentation, figures expressing magnitude are rounded to integers. % change and margin figures, on the other hand, are computed by using the exact (not-rounded) magnitude figures. For this reason, % change and margin figures that are computed by dividing the magnitudes in the presentation may differ to some extent from those presented in the graphs and tables.

Sales Revenue

5

Consolidated (Million TRY) By Segment (Million TRY)

By Segment (%)

Contracting Agri Industry Real Estate Other

289 371

10 21

546

454

6 18

2011/3 2012/3

42%54%

1% 3%2011/3

2011/3 2012/3

690

1.023

53%

44%1% 2%

2012/3

EBITDA

6

Consolidated EBITDA (Million TRY) EBITDA by Segment (Million TRY)


12

82

1

-1

58 42

0 0

2011/3 2012/3

2011/3 2012/3

94 99

EBITDA Margin

7

Consolidated (%) By Segment (%)


4,3

22,0

6,5

-3,0

10,7 9,2

-1,9 -2,0

2011/3 2012/3

2011/3 2012/3

13,6

9,7

Net Profit

8

Consolidated (Million TRY) By Segment (Million TRY)


2

70

1 4

37 44

0 11

2011/3 2012/3

2011/3 2012/3

76

92

Net Profit Margin

9

Consolidated (%) By Segment (%)


0,6

18,8 12,8

17,7

6,9 9,6 6,5

59,8 2011/3 2012/3

2011/3 2012/3

11,1 9,0

Net Cash Position*

10

Consolidated (Million TRY) By Segments (Million TRY)

* Net of bank loans, leasing payables, cash and cash equivalents.


-230

196

19

391

-225

248

15

4132011/12 2012/3

2011/12 2012/3

376450

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Contracting Group



Stock Performance

Content

Contracting GroupTekfen Contracting Group undertook a total of USD 690 million worth new projects in

January-April 2012 period, of which USD 98 million in Iraq and USD 592 million in Qatar.

The work in Iraq is a contract with the BP Iraq N.V., Petrochina Company Limited and SouthOil Company joint venture to carry out all Project Management Services for a period of two years.This contract is in addition to the Engineering and Project Management Services for Iraq’s BasraRumalia Petrol Production Area which Tekfen Construction completed at the end of March 2012.

The work in Qatar entails engineering and construction works related to the connecting roads ofthe North Road Highway. The project has a duration of 30 months.

For the rest of the year, the following regions will be under the focus of Tekfen ContractingGroup :

• In the Caspian Region, Azerbaijan (Shah Deniz Phase 2 related projects, construction offertilizer plants and other works) and Turkmenistan (miscellaneous onshore and offshorecontruction works)• In the Middle East Qatar (infrastructure, subway, motorway and stadium projects) and Iraq(miscellaneous construction works and engineering services)• In Turkey, refinery project in Izmir

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General Evaluation

Contracting Group

13

Geography

Tekfen Contracting Group operates in 10 countries spread around 3 continents. Among these, in 9 countries(Turkey, Azerbaijan, Kazakhstan, Saudi Arabia, Qatar, UAE, Turkmenistan, Morocco and Libya*) Tekfen hasconstruction sites. In Iraq, on the other hand, Tekfen gives project management services to BP. In addition tocontracting activities, the Group has 3 manufacturing plants in Derince, Ceyhan and Baku (Azerbaijan).* As of the date of this presentation, the operations in Libya are frozen.

Contracting Group Backlog as of March 31, 2012

14

* Expected end date” refers to the mechanical completion date.

Contracting Group Growth

15

Backlog (USD million)

The backlog, which was at USD 2 billion as of 2011-end, is at USD 1,9 billion as of end ofMarch 2012. With the addition of USD 592 million Qatar Project to the backlog, the end ofApril backlog figure will surpass USD 2 billion threshold.

As of end of March 2012, the backlog outside Turkey adds up to 73% of total backlog.

0

500

1.000

1.500

2.000

2.500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/3

569 484 484 368 237 159 111 72 75 34 36555 516

175 201 242167 264

1.5351.350

1.6681.257 1.225

1.794

1.449 1.387

Abroad Turkey

744 685 726535 501

1.6941.461

1.740

1.333 1.259

1.8302.005 1.903

Contracting Group Ongoing Projects

Backlog Breakdown by Regions Backlog by Project Types

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Region USD Million Turkey 516Caspian Region 493North Africa 492Middle East 402 Total 1.903

Project Type USD Million Industrial Facilities 1.072Pipeline 409Buildings 214Motorway 161Tankage 26Power Plant 18Fabrication Works 4Total 1.903

Middle East21%

North Africa26%

Caspian Region

26%

Turkey27% Pipeline

22%

Tankage1%

Industrial Facilities

56%

Power Plant1%

Motorway8%

Fabrication Works

0%

Buildings11%

Contracting Group

17

Revenues (MTRY) and EBITDA Margin (%)

Revenues &EBITDA Margin

The EBITDA margin which was at 9.3% level by the end of 2011, is at 10.7% as of end ofMarch 2012.

Expected project-end EBITDA margin varies from 10% to 25% on project basis.Tax rates that the Group is exposed to in the countries it operates vary between 0-35%.

545 534

1.073 1.031

1.319 1.3411.111

1.864

2.352

5,1%

12,7%12,0%

7,3%8,5%

11,2%

13,2%

9,3% 10,3%

0%

2%

4%

6%

8%

10%

12%

14%

0

500

1.000

1.500

2.000

2.500

2004 2005 2006 2007 2008 2009 2010 2011 2012P

Revenues Margin

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Contracting Group



Stock Performance

Content

CHEMICAL FERTILIZERS

Global DevelopmentsGrain prices in 2012/Q1 stayed at the same level of 2011/Q4.Fertilizer prices, after sudden decreases observed at the end of 2011, moved to different directions fornitrogenous and phosphatic fertilizers in 2012/Q1. As northern hemisphere entered the spring seasonwithout any early procurement for nitrogen fertilizers, prices were strong in this group. On the phosphaticside, the largest buyer India entered the season with high inventory and delayed its purchasing; therefore,prices were soft in 2012/Q1.Ammonia1 prices kept decreasing in the first two months of the quarter. However, towards the end of thequarter, prices started increasing with strong demand in the U.S. Average price in this quarter was 17%lower than 2011/Q1.Urea prices, on the other hand, continuously increased within the quarter. Especially granular urea2 pricewas very firm due to strong demand from the U.S. and the price at the end of 2012/Q1 increased by 51%compared to the price recorded at the beginning of the quarter. In 2012/Q1, average price of prilled urea3

and granular urea increased by 11% and 20% respectively year on year.In parallel with urea, prices of other nitrogenous fertilizers; AN4 and AS4, also increased within the quarter.DAP5 prices stayed soft in the first quarter of the year after the sudden weakness in December. AverageDAP price decreased by 12% year-on-year, and 18% quarter-on-quarter.

Developments in TurkeyDue to unfavorable weather conditions fertilizer demand moved towards the last weeks of the quarter andApril.

1919

Agri-Industry Group Developments

1. Ammonia: FOB Black Sea, 2. Granular Urea: FOB Egypt, 3. Prilled Urea: FOB Ukraine, 4. AN and AS: FOB Black Sea, 5. DAP: FOB Morocco

2012/Q1 Domestic Sales and Market ShareToros Agri

Domestic Sales

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Domestic Sales By Product (1,000 Tons)

AN 26 AN 33 AS UREA DAP COMP OTHER

210

135

2438

20

160

2

208

160

28 3321

141

1

2011/Q1 2012/Q1

Fertilizer sales remained at the same level of 2011/Q1.Unfavorable weather conditions delayed demand and compound fertilizers sales volume decreasedcompared to 2011/Q1.

563 571

26 21

31,6%29,2%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

0100200300400500600700800900

1.000

2011/Q1 2012/Q1

1,00

0 To

ns

Dealer Sales Whole Sales Marketshare

592589

Toros Agri

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Domestic Sales Prices (USD/ton)

2012/Q1Domestic Sales Prices

2011/Q1 2012/Q1 ChangeAVERAGE PRICE (USD/TON) 359 392 9%

AS AN 26 AN 33 UREA COMP DAP

282 289333

451 433

584

267324

371

489 481

649

2011/Q1 Ave. 2012/Q1 Ave.

2012/Q1Production and ImportsToros Agri

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Production (1,000 tons) Imports (1,000 tons)

CUR: 74% (2011/Q1: 82%): Ceyhan: 56% (2011/Q1: 71%), Mersin: 100% (2011/Q1: 123%), Samsun: 41% (2011/Q1: 50%)

Due to lower sales volume, compound fertilizer production decreased compared to last year.

9569

25

152

341

85 76

27

113

301

AN 26 AN 33 DAP COMP Total Production

2011/Q1 2012/Q1

10

2720

1

58

1928

18

2

67

AN33 AS UREA Other Total Imports

2011/Q1 2012/Q1

Agri-Industry GroupTerminal Services

2323

Handling (1,000 Tons)

Handling volume for dry/liquid bulk-general cargo was at the same levels of 2011/Q1.As expected, volatility in the petroleum product prices affected the demand for storage negatively in Q1.Occupancy rate was 23%.

Leased Capacity (1,000 m 3)

Petroleum Products

482

152

2011/Q1 2012/Q1

* Does not include petroleum products’ handling volume.

Dry/Liquid Bulk - General Cargo*

860 861

2011/Q1 2012/Q1

Handled Quantity and Leased Capacity

2011/Q1 2012/Q1

6541

53M

illio

n T

RY

Agri Terminal

Agri-Industry Group

2424

Agri segment’s revenue was higher than 2011/Q1 due to price increases.The beginning inventory was higher in value and in quantity compared to 2011/Q1 and this increase in costscould not be fully reflected to sales prices; therefore, profitability was lower. Above average EBITDAmargins achieved in 2011/Q1 also offered a high base for 2012/Q1.As a result of favorable exchange rate, financial income was higher than expectations and higher than2011/Q1. Therefore, net income was higher than expectations.In terminal segment, profitability was lower due to lower occupancy rate in petroleum products storage.

Revenue EBITDA Net Income

Revenue, EBITDA, Net Income

2011/Q1 2012/Q1

7537

7

5

Mill

ion

TR

Y

Agri Terminal

8242 44

70

2011/Q1 2012/Q1

358441

13

13

Mill

ion

TR

Y

Agri Terminal

371454

25



Contracting Group



Stock Performance

Content

26


Tekfen OZ Real Estate Development Co., Inc Business Line: Investment

Tekfen Real Estate Dev. Inv. and Trade Co., IncBusiness Line: Investment, development, project management, asset management

Tekfen Tourism and Management Co., IncBusiness Line: Facility Management

Tekf

enR

eal E

stat

eD

evel

opm

entG

roup

Organization

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Ongoing ProjectsReal Estate Development Group

ProjectProject

Function LocationStart Date of Construction

Expected End Date of

Construction

Estimated Project Size

(Million USD)

Kagithane OfisPark Office Istanbul Aug.09 Jan.12 60*

Bomonti Apartments Residential Istanbul Oct.10 Sep.12 25**

Bomonti Apartments Phase 2-3 Residential Istanbul Oct.12 Dec.15 113**

Izmir Mixed Use Mixed Use Izmir Jan.13 Jun.16 254**

Total 452

* Values indicate Tekfen-OZ share in total sales revenue.** Values indicate Tekfen share in total sales revenue.


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Ongoing Projects

*All values are in m² and indicate Tekfen Real Estate Development Group share.

Total sellable/leaseble area 116.585 m²

Breakdown by Function

Project

Residential Sellable/Leasable

Area*

Office Sellable/Leasable Area*

Retail Sellable/Leasable Area*

Office Park Kağıthane

0 14.806 2.729

Izmir Project 25.000 10.000 30.000

Bomonti Project

7.059 0 0

Bomonti Project Phase2-3

23.991 0 3.000

TOTAL 56.050 24.806 35.729

56.05048%

24.80621%

35.72931%

Residential Office Retail


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Potential Projects

* All values are in m² and US$ indicating the Tekfen Real Estate Development Group share in the project.

BREAKDOWN BY FUNCTION Project Residential

Sellable/Leasable

Area*

Office Sellable/Leasable

Area*

Retail Sellable/Leasable Area*

Start of Construction

End of Construction

Tekfen RE Share Project

Size*(million $)

KağıthanePhase II 0 13.000 0 2014 Q1 2016 Q2 79

Kağıthane Ege Kimya 0 21.000 0 2013 Q2 2015 Q2 67

TOTAL 34.000 146

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Contracting Group


Real Estate Group

Stock Performance

Content

Stock Performance

31

* 22 November 2007 values are indexed to 100.

111,01

132,90

0,00

20,00

40,00

60,00

80,00

100,00

120,00

140,00

160,00

180,00

23.1

1.20

0706

.01.

2008

19.0

2.20

0803

.04.

2008

17.0

5.20

0830

.06.

2008

13.0

8.20

0826

.09.

2008

09.1

1.20

0823

.12.

2008

05.0

2.20

0921

.03.

2009

04.0

5.20

0917

.06.

2009

31.0

7.20

0913

.09.

2009

27.1

0.20

0910

.12.

2009

23.0

1.20

1008

.03.

2010

21.0

4.20

1004

.06.

2010

18.0

7.20

1031

.08.

2010

14.1

0.20

1027

.11.

2010

10.0

1.20

1123

.02.

2011

08.0

4.20

1122

.05.

2011

05.0

7.20

1118

.08.

2011

01.1

0.20

1114

.11.

2011

28.1

2.20

1110

.02.

2012

25.0

3.20

1208

.05.

2012

ISE 100 TEKFEN

Disclaimer

32

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 ofthis Presentation is based on public information and on data provided by the Companymanagement. Neither the Company nor any of its directors, managers or employees norany other person shall have any liability whatsoever for any loss arising from use of thispresentation. This Presentation does not constitute an offer or invitation to purchase thesecurities of the Company. Investors and prospective investors interested in the securitiesof the Company are required to conduct their own independent investigations andappraisal of the business, financial condition of the Company and the nature of itssecurities. Except for the historical information contained herein, the statements made inthis Presentation with respect to the Company’s plans, strategies, beliefs and otherprospective matters are forward-looking statements that involve risk and uncertainty thatare not under the Company’s control which may cause actual results to differ materiallyfrom those anticipated. Except where otherwise indicated, this Presentation speaks as ofthe 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.

Contact Information

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For General Questions and Requests for Reports: Çağlar Gülveren, CFA Investor Relations and Corporate Governance Coordinatore-mail: [email protected]: +90 212 359 3420

Contracting Group: Osman Birgili, Tekfen Construction Senior Vice Presidente-mail: [email protected]: +90 212 359 3552

Agri-Industry Group:Esin Mete, CEO of Agri Industry Groupe-mail: [email protected]: +90 212 357 0193

Real-Estate Development Group:Ayşe Turalı, Assistant General Managere-mail: [email protected]: +90 212 359 3703

mailto:[email protected]




01.01.2012 - 31.03.2012 financial & operational …...2012 january – march financial results...

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