investor presentation · 30.10.2015 bozshakol copper ore plant project alarko kazakhstan 493 100,0...

INVESTORPRESENTATION

ALARKO HOLDING A.Ş.

TABLE OF CONTENTS

1INTRODUCTION

2ALARKO HOLDING SHAREHOLDER STRUCTURE & PARTICIPATION

3ALARKO HOLDING CONSOLIDATED REvENUE DISTRIBUTION

5ALARKO HOLDING CONSOLIDATEDIFRS FINANCIALS

6ENERGY GROUPOvERvIEW

7ENERGY GROUPELECTRICITY GENERATION

11ENERGY GROUPELECTRICITY DISTRIBUTION

14CONTRACTING GROUP

21LAND DEvELOPMENT GROUPALARKO REIT

25INDUSTRY & TRADE GROUPALARKO CARRIER

31TOURISM GROUP

34FINANCIAL STATEMENTS

38APPENDIX

INTRODUCTION

ALARKO was founded in 1954 and today, operates in five main areas:

Three of the group companies are trading in Borsa Istanbul:

NAME OF THE COMPANY BISTSYMBOL

BLOOMBERGSYMBOL

FREEFLOAT

MARKETCAPITALIZATION

(US$ MILLION)as of November 11, 2015

Alarko Holding Inc. Alark Alark:TI 28,8% 269

Alarko Carrier Industry & Trade Alcar Alcar:TI 15,9% 125

Alarko Real Estate Investment Trust Algyo Algyo:TI 49,0% 1091

ENERGY INDUSTRY& TRADECONTRACTING LAND

DEVELOPMENT TOURISM

dffff

2FULL

SHAREHOLDER STRUCTURE & PARTICIPATIONS

ALSIM (100%) CONTRACTING

ALARKO CARRIER (43%) INDUSTRY&TRADE

ALARKO REIT (51%) LAND DEVELOPMENT

ATTAS (100%) TOURISM

OTHERS: MEDAS, MEPAS, MESAS,CENAL, ALEN, ALDEM, ALFENAS,ALAMSAS, MOSALARKO, ALRIVA, and others

ALATONFAMILY

GARİHFAMILY

CONSOLIDATION METHOD

35,4%

33%

FOUNDERFAMILIES

OTHERSHAREHOLDERS

ALHAN HOLDING

DESTEK FOUNDATION

OTHER

HAVE 68,4% PARTICIPATION IN

EQUITY

2,0%

%0,1

0,7%

ALTEK (100%) ENERGY

ALCEN (50%) ENERGY

dffff

REvENUE DISTRIBUTION BY YEARS

3

2012

ENERGY

TOURISM

INDUSTRY&TRADE

57%

CONTRACTING& LAND DEVELOPMENT

SEAFOOD

28%

1%

9%

5%

2013

ENERGY

TOURISM

INDUSTRY&TRADE

40%


SEAFOOD

11%

4%

48%

1%

2014

ENERGY

TOURISM

INDUSTRY&TRADE

49%


SEAFOOD

8%

37%

5%

1%

2015/9M

ENERGY

TOURISM

INDUSTRY&TRADE

67%


10%

16%

7%

TTT

net profıt by years

Alarko Holding Consolidated Net Profit (US$ MILLION)

4

100 M

75 M

50 M

25 M

2006 2007 2008 2009 2010 2011 2014 2015/9M

0 M

34 36 3326

60

2012

43

2013

86

1532

-19

TTT

CONSOLIDATED IFRS FINANCIALS

CASH&FINANCIAL INV.

FINANCIAL LIABILITIES

NET CASH POSITION

SELECTED FIGURES

EBITDA MARGIN (%)

REVENUES

OPERATIONAL PROFIT

EBITDA

NET PROFIT

(US$ MILLION)

TL/US$ EXCHANGE RATE 5

(1-2)

(2)

(1)

*Due to changes in reporting standards starting from 2013, equal share partnerships are consolidated using “equity method”.The figures of 2013 and onwards above and in the summary financials of Energy, Contracting, Industry&Trade and Tourismgroups in following pages approximately represent the contribution of all businesses, including equal share partnerships.

31.12.2014*

7%

319

220

99

942

44

70

15

2,32

30.09.2015*

11%

265

309

-44

457

38

51

-19

3,04

31.12.2013*

327

170

164

16%

1.143

150

188

86

2,13

31.12.2012

356

137

219

7%

908

36

59

43

1,78

6

KARAKUZHYDROELECTRIC

POWER PLANTADANA-TURKEY

energy group - OvERvIEW

GENERATION

TRADING

DISTRIBUTION

ALTEK – Kırklareli Combined Cycle Natural Gas Power Plant

PARTNERSHIPALARKO

ALTEK – Adana Karakuz Dam and Hydroelectric Power Plant

ALTEK – Malatya Tohma Hidroelectric Power Plant

ALEN – Electricity Trading Company

CENAL – Çanakkale Karabiga Imported Coal Fired Power Plant

MEPAŞ – Electricity Retail Sales Company

PANEL ENERJİ – Solar Energy Generation Company

MESAŞ – Electricity Wholesale Company

MEDAŞ – Electricity Distribution Company

6

7

KARAKUZHYDROELECTRIC

POWER PLANTADANA-TURKEY

KIRKLARELİ 1 AND 2 GAS FIRED COMBINED CYCLE POWER PLANTS, KIRKLARELİ-TURKEY

energy group - electrıcıty generatıon

7

Turkish Energy Market is among the fastest growing energy markets in the world parallel to Turkey’seconomic growth.

Demand for electricity is estimated to grow at an annual rate of 7,5%

between 2013-2023.

The 6th largest energy market in Europe.

According to EMRA’s Reserve Margin studies based on

Generation Capacity Projections of Turkey, energy deficit is

expected to start around 2017 and continue in the following years.

The state’s privatization process of 46 Power Plants with a total of 16.200 MW capacity under EÜAŞ (Electricity Generation Company) started in 2009 and currently continues.

Total installed capacity is expected to reach from the current72.000 MW level to 96.000 MW until 2023 to meet the demand.

Energy Market Regulatory Authority operates as an independent market regulator and the market is well organized and has a structured legal framework.

High demand increase vs. developed economies: 4,6% per annum since 1990 (EU: 1,6%)


8

DRIVERS OFGROWTH IN THEENERGY SECTOR

The electricity generation company, ALTEK, which is a fully owned subsidiary of Alarko Holding,generates electrical energy, with 2 hydroelectric and 2 natural gas power plants, of total 253 MWgeneration capacity.

POWER (MW) STARTUP CONCESSIONLICENCE PERIOD

TOTALINVESMENT COST

(US$ MILLION)

POWER PLANTSALTEK

ÇANAKKALE-KARABİGA(IMPORTED COAL FIRED)

TOTAL(CENAL ENERGY INC.)

NEW POWER PLANT PROJECTSCENAL ENERGY INC.

1.320

1.320

1.573

2018 49 years

TOHMA/MALATYAHYDROELECTRIC (BOT) 12,5 1998 20 years 11,4

1.200

1.200

1.455

KIRKLARELİ NATURAL GASPOWER PLANT-1 82 2006 49 years 64

KIRKLARELİ NATURAL GASPOWER PLANT-2 82 2010 49 years 80

KARAKUZ HYDROELECTRICPOWER PLANT 76 2015 49 years 100

TOTAL (ALTEK) 253 255

GRAND TOTAL

9


LOCATION:KARABİGA/ÇANAKKALE

KARABİGA:New Imported Coal Fired Power Plant

We obtained the Grid Connection Permit of TEİAŞ and we received the Generation License from EMRA as of April 2013.

The construction of the 1.320 MW Power Plant started in 2013.

The project is being executed by Cenal Energy Generation Inc. which is a joint partnership (50%-50%) of Alarko Holding and Cengiz Group.

The project is being financed by 25% equity and 75% external debt, from 4 local banks.

Most probable sources for imported coal are Australia, South Africa, Colombia and Indonesia.

10


The EIA (Environmental Impact Assessment) report which we have obtained back in May 2012 has been revised and upgraded.

energy group - ELECTRICITY DISTRIBUTION

KIRŞEHİR

NEVŞEHİR

NİĞDE

KARAMAN

KONYA

AKSARAY

Meram Electricity Distribution Region: Konya, Karaman, Kırşehir, Aksaray, Nevşehir and Niğde

11


We took over Meram Electricity Distribution Co. as of 30.10.2009, by paying a USD 440Mn

privatization value upfront.

Alarko Share is 50% and the remaining 50% is owned by Cengiz Group.

The financing of the privatization has been made by using approximately

30% equity and 70% debt.

The loss & theft ratio of Meram Region is approximately 8,5%,

lower than the overall average in Turkey which is approximately 14-15%.

The licence period is 30 years, until August 2036.

Meram region covers 6 provinces in central anatolia; 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.

Annual energy consumption is approximately 7 billion kWh in the region (net consumption).

Meram buys electricity from the TETAŞ (75%) and Spot Market (25%). (TETAŞ = State Electricity Trading Co.,Spot Market = DUY System / Free Market)

Approximate sales distribution of Meram by consumer segments is; Industry: 29%, Housing: 28%, Commercial: 22%, Agricultural Irrigation: 18% Lighting: 4%.

The Retail Sales Net Margin is 3,49%, from the beginning of 2013 until the end of 2015.

The annual revenues of Meram are approximately around USD 800 Mn.

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.

:MERAM ELECTRICITY DISTRIBUTION COMPANY12


X

The Retail Sales Net Margin is 3,49%, from the beginning of 2013 until the end of 2015.

X

* The figures represent Energy Generation & Energy Distribution. Separate figures of Energy Generation and Energy Distribution are in Appendix 1&2** 40Mn USD out of the 58 Mn USD Net Profit in 2012 is from group company dividend payment which is eliminated from Alarko Holding consolidated net profit

SELECTED FIGURES

EBITDA MARGIN (%)

REVENUES

OPERATIONAL PROFIT

EBITDA

NET PROFIT

CASH&FINANCIAL INV.


NET CASH POSITION (1-2)

(2)

(1)

(US$ MILLION)CONSOLIDATED IFRS FINANCIALS*

13

energy group

12%

39

210

-171

464

46

55

21

31.12.2014

2,32

8%

10

303

-293

306

18

25

-20

30.09.2015

3,04TL/US$ EXCHANGE RATE

21

107

-86

4%

510

8

20

58**

31.12.2012

1,78

9%

27

146

-119

462

33

43

14

31.12.2013

2,13

14

IRTISH RIVER BRIDGE,SEMIPALATINSK-KAZAKHSTAN

KIEV-BORYSPIL AIRPORT,UKRAINE

CONTRACTING GROUP

ANKARA-ESKİŞEHİR FAST TRAIN PROJECT, TURKEY

14

15

15

421

138

559

DOMESTIC PROJECTS

INTERNATIONAL PROJECTS

TOTAL

TOTAL BACKLOG SUMMARY (US$ M)

9-12%

2-4 years

CONTRACTING GROUP

Alarko’s contracting subsidiary ALSİM mainly focuses on large scale infrastructure projects with positive cash flow.

The employers are mainly;

central governments & local municipalities,other local and international institutions.

Target EBITDA margin: Average project completion period:

Strong track record in local and internationalprojects such as subways, railroads, airports, highways, pipelines, refineries etc.

Details are on page 21

30.10.2015

16

CONTRACTING GROUP - DOMESTIC BACKLOG

PARTNERS LOCATIONCONTRACT

SIZE(US$ MILLION)

ALARKO’SPARTION %

COMPLETION%

CONSTRUCTIONPERIOD

BACKLOG (US$ MILLION) PROJECTS

LEVENT-AYAZAĞA SUBWAY PROJ. Electromechanic Works

TOTAL DOMESTIC PROJECTS UNDER EXECUTION(US$ MN)

ALARKO’S PORTION (US$ MN)

KABATAŞ-MECİDİYEKÖYMahmutbey Subway Project

ANKARA SUBWAY PROJECTElectromechanic Works

ALARKO-MAKYOL

ALARKO

ALARKO-ANSALDO

799

1.182

İSTANBUL

İSTANBUL

ANKARA

2008

2015

2011

-

-

-

2015

2018

2015

447 50 98,5 3

415 100 0,0 415

320 50 98,2 3

421

30.10.2015

16

17

CONTRACTING GROUP - INTERNATIONAL BACKLOG

PARTNERS LOCATION BACKLOG (US$ MILLION) PROJECTS

TOTAL INTERNATIONAL PROJECTS UNDER EXECUTION (US$ MN)

ALARKO’S PORTION (US$ MN)

733

733

TALDYKOL SEWER POND LIQUIDATION PROJ. (FINAL STAGE),

2nd SEQUENCE, 5th STAGE

TALDYKOL SEWER POND LIQUIDATION PROJ. (FINAL STAGE),

1st SEQUENCE, 3rd STAGE

ALARKO KAZAKHSTAN 100,0 2013 2017142 58,5 59

138

-

-

-

30.1

0.20

15

BOZSHAKOL COPPER ORE PLANT PROJECT ALARKO KAZAKHSTAN 100,0 2011 2015493 98,4 8

ALARKO KAZAKHSTAN 100,0 2012 201598 27,3 71

17

CONTRACTSIZE

ALARKO’SPARTION %

COMPLETION%

CONSTRUCTIONPERIOD

18

CONTRACTING GROUP

18

CURRENT BACKLOG BREAKDOWN BY COUNTRY

CURRENT BACKLOG BREAKDOWN BY PROJECT CATEGORY

WASTEWATERTREATMENT

PLANT

SUBWAY

KAZAKHSTAN

TURKEY

COPPERORE PLANT

25%

75% 75%

23%

2%

19

CASH&FINANCIAL INV.


NET CASH POSITION

SELECTED FIGURES

EBITDA MARGIN (%) 15%-

163173

69

157164

REVENUES 74345

OPERATIONAL PROFIT 7,4-22

EBITDA 11,4-9

NET PROFIT

191

30

161

18%

256

37

45

26 8,4-16

22%

185

23

162

553

97

121

86

(1-2)

(2)

(1)

* The financials above include Land Development

(US$ MILLION)CONSOLIDATED IFRS FINANCIALS*

CONTRACTING GROUP

193,042,32TL/US$ EXCHANGE RATE 1,78

31.12.2012 30.09.201531.12.201431.12.2013

2,13

20

INTE

RNA

TION

AL

20

Water & Waste Water (W.W.), Treatment Plants

Taldykol Sewer Pond Liquidation - 1st, 2nd & 4th Stages

Oran Arzew Industrial Zone Desalination & Power Plant

Astana Water Distribution & Sewerage ProjectKazakhstan

AlgeriaKazakhstan

Crude Oil Pipeline Lot-B Package

Phillip Morris Cigarette Factory

Polypropylene Plant

British American Tobacco Factory

Petro - Petrochemical Plants & Refineries


Turnkey Industrial Plants

Baku-Tbilisi-Ceyhan

Kazakhstan

Turkmenistan

UzbekistanGoznak Banknote Plant Russia

Kiev Boryspil AirportTransportation Projects

Bukhara International Airport Modernization ProjectUkraine

Uzbekistan

CONTRACTING GROUP - MAJOR COMPLETED PROJECTS

Ashkhabad International AirportAstana International Airport

Urgench International Airport Modernization Project

Aktobe - Kostanai Highway Rehabilitation

Samarkand International Airport Modernization Project

TurkmenistanKazakhstan

Uzbekistan

Kazakhstan

Uzbekistan

DO

MES

TIC


İzmit Bay W.W. Treatment Plant

Tuzla Biological W.W. Treatment Plant

Melen-Düzce Water Project

Yarımca Petroleum Refinery W.W. Treatment Plantİzmit

İstanbul

Kocaeli

İzmit

Natural Gas Pipeline

Tüpras Petroleum Storage Tanks

Hasanlar, Tohma and Berdan Hydroelectric Power Plants

Natural Gas Distribution Network

Tüpras İzmit and Tüpras Kocaeli Refinary Projects

Power Plants

Gas & Pipelines

Petro - Petrochemical Plants & Refineries

Erzurum

İzmir

Düzce, Tarsus & Malatya

İstanbul & Bursa

İzmit & Kocaeli

Kırklareli Combined Cycle Natural Gas Power Plants (I-II) KırklareliKarakuz Hydroelectric Power Plant Adana

Levent Hisarüstü Subway Project İstanbulTaksim Yenikapı Subway Project İstanbul

Alarko Carrier FactoryHyundai Car Factory

Housing, Business Centers, Hotels & Hospitals

Turnkey Industrial PlantsGebze

İzmit

International AirportTransportation Projects

Sabiha Gökçen International AirportSamsunİstanbul

Alkent 2000Atasehir Satellite TownTarabya Presidency Complex

Süleyman Demirel University Hospitalİstanbulİstanbulİstanbul

Isparta

Adana Rail System ProjectSamsun Light Rail Project

Ankara-Eskisehir Fast Train Project

Antalya Light Rail Project

Levent Ayazağa Subway Project

AdanaSamsun

Ankara-Eskişehir

Antalya

İstanbul

Almaty - Bishkek Road Rehabilitation Kazakhstan

Atyrau-Aktau Road ProjectIrtish River Bridge

KazakhstanKazakhstan

Housing, Business Centers, Hotels & HospitalsMarksistkaya Business Center Moscow / Russia

Tverskaya Business & Shopping Center, Moscow / Russia

Chezkazgan Hospital ComplexWK Verwaltungs Hotel Construction

KazakhstanGermany

“ALKENT İSTANBUL 2000”Büyükçekmece, İstanbul-TURKEY

“ALKENT İSTANBUL 2000”Büyükçekmece, İstanbul-TURKEY

LAND DEvELOPMENT GROUP

21


ALARKO REAL ESTATE INVESTMENT COMPANY(ALARKO REIC)

MOS ALARKO(MARKSISTKAYABUSINESS CENTER)RUSSIA

Is the first REIC IPO in Turkey (1997) and is a tax-exempt company.

Generates rental revenue, approximately US$ 5 – 5,5 million per year.

Has recently completed the development of 63 Lake Mansions in Büyükçekmece and most of the units are sold.

A business complex in Moscow city center, built jointly (50%-50%) with the Municipality of Moscow in 1999.

10% of the building is sold to Ziraat Bank, and the remaining part is being leased to various international companies. Total leasable area is 6.000 sqm, and generates US$ 3,5 million rental revenue per year.

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.

22

23

TOTAL PORTFOLIO

TOTAL PORTFOLIO

PORTFOLIO VALUE OF ALARKO REIT


186,68

568,13

214,18

496,67

(US$ MILLION)

(TL MILLION)

(US$ MILLION)

3,042,32TL/US$ EXCHANGE RATE

CASH AND MARKETABLE SECURITIES 83,24 86,91

REAL ESTATE PORTFOLIO 130,95 99,78

Land in Eskice Village, Büyükçekmece - İstanbul 20,50 15,62

Villa’s in Eskice Village, Büyükçekmece - İstanbul 8,42 6,42

Alarko Business Center (Karaköy - İstanbul) 1,87 1,42

Alarko Business Center (Şişhane - İstanbul) 1,27 0,97

Hillside Beach Club Holiday Village - Fethiye 54,98 41,90

Factory Building - Eyüp - İstanbul 14,23 10,84

Shops in Etiler - Alkent - İstanbul 4,96 3,78

Shops in Büyükçekmece - Alkent 2000 - İstanbul 2,59 1,97

1,68Alarko Business Center (Ankara) 1,28

Land in Maslak, İstanbul 20,44 15,58

31.12.2014 30.09.2015

24

t

24

CASH&FINANCIAL INV.


NET CASH POSITION

SELECTED FIGURES

EBITDA MARGIN (%) 283%

87

-

87

REVENUES 6,7

OPERATIONAL PROFIT 25,7

EBITDA

NET PROFIT

74

-

74

113%

8,6

9,7

9,7

8,0

80

-

80

262%

15,1

39,5

39,5

39,5

526%

83

-

83

6,4

33,7

33,7

33,7

(1-2)

(2)

(1)

* The financials above are the solo figures of Alarko REIT company

(US$ MILLION)IFRS FINANCIALS*

AlARkO REIT IFRS FINANCIALS

3,042,32TL/US$ EXCHANGE RATE 2,131,78

31.12.2012 31.12.2013 30.09.201531.12.2014

25,7

25,7

25

t

INDUSTRY & TRADE GROUP

25

2626


United Technology Corporation trades in the New York Stock

Exchange (Symbol: UTX). Business units under United

Technologyy Corporation are; Carrier, Pratt&Whitney, Otis, Sikorsky, UTC

Fire&Security and Hamilton Sunstrand.

Alarko Carrier is a solid HVAC company with stable revenue generation ability.

Has Marketing & Salesoffices in 5 major cities; İstanbul, Ankara, İzmir, Adana and Antalya.Has approximately 300 dealers and

300 technical after-sale services.

SALES BREAKDOWN CHARTS

Formed an equal-share partnershipwith Carrier in 1998, a subsidiary of

United Technology Corporation-USA.

Is a major heating & coolingproducts manufacturer,with two production plants in Istanbul.

50%50% 45% 55%

DIRECT SALES

SALES THROUGH DEALERSSALES FROM DOMESTICALLY MANUFACTURED PRODUCTS

SALES FROM IMPORTED PRODUCTS

27


SALES BREAKDOWN BY PRODUCT CATEGORIES

Residential AC19% of sales

Hi-walls Ducted

Floor/ceiling

ChillersRoof top unitsAHU/fan coils

VRFNon-CarriersBMS/Controls

Wall-hung boilersBurners

Radiators+

Submersible pumps

Pump motorsWater boosters

Commercial AC37% of sales

Centralized Heating andCooling SystemsPanel Radiators

Gas and Oil BurnersBoilers & Circulation

Pumps Split AC Units

Air Handling UnitsRoof Top AC Units

Submersible Pumps andMotors

Water Boosters

Heatingsystems

25% of sales

Pumps3% of sales

AftermarketsParts,

Maintenance16% of sales

MAJORPRODUCTS

MAJOREXPORT

PRODUCTS

MAJOREXPORT

MARKETS

Panel Radiators, Air Handling Units, Gas and Oil Burners, Roof Top AC Units

UK, Germany, Greece, The Netherlands,Russia, Azerbaijan, Romania, UAE, France,Italy, Spain, Australia, Belgium, Kazakhstan

(TOTAL 51 COUNTRIES)

27

28

28


STANDARDIZATION & CERTIFICATION

Coaching, Teaching & Baselining

Trying the tools;getting some

results

Significantly improving

business metrics

Best-in-class, year-over-year business metrics improvements

2005 2008 2009 2010 2011 2012 2016

The United Technologies Operating SystemAchieving Competitive Excellence

29


SELECTED FIGURES

EBITDA MARGIN (%)

REVENUES

OPERATIONAL PROFIT

EBITDA

NET PROFIT

CASH&FINANCIAL INV.



(2)

(1)

CONSOLIDATED IFRS FINANCIALS (US$ MILLION)

13%

15

-

15

45

4,8

5,7

3,9

30.09.2015

3,04

11%

22

-

22

76

7,3

8,0

5,9

31.12.2014

2,32TL/US$ EXCHANGE RATE

28

-

28

6%

86

4,7

5,5

6,7

31.12.2012

1,78

14%

26

-

26

75

9,3

10,3

7,6

31.12.2013

2,13 29

30


MARKET SHARES IN TURKEY

4,4%

9,3% 9,0%

MAIN COMPETITORS

HEATING

HEATING

AIRCONDITIONING

ACPRODUCTS

PUMPSPUMPS

Baymak / BDR (Holland) ECA

Türk Demir Döküm (subsidiary of Vaillant)

Vaillant (Germany)

ArçelikVestel

Daikin (Japan)Johnson Controls /York Trane (USA)

Grundfoss (Danmark)Wilo (Germany)

30

31

TOURISM GROUP

HILLSIDE BEACH CLUBFETHİYE-TURKEY

CINECITYİSTANBUL-TURKEY

HILLSIDE CITY CLUBETİLER, İSTANBUL-TURKEY

HILLSIDE CITY CLUBİSTİNYE, İSTANBUL-TURKEY

31

3232

The Tourism Group, ATTAŞ, owns and operatescity clubs and hotels in Turkey, under the brand name hillside, and targets to grow in leisure sector.

Main Activities;

Holiday villages and hotels,Sports, recreation centers,Movie theaters,SPAs

- First-class holiday village

- Located in south-west of Turkey, in Fethiye

- 330 rooms/781 bed capacity

- Managed by the Tourism Group since 1994

- Rate of occupancy: 90% in 2013 and 2014

The services offered include:- Gym & Cardio areas,group workouts- Basketball, Tennis, Squash,Racquetball facilities- Swimming pools- Kids Club, Restaurants &Cafes etc.

TOURISM GROUP

Movie Theaters- In Istanbul and Izmir, in 4 different locations (including Hillside City Clubs) - Total of 27 movietheaters

First SPA chain in Turkey with5 different locations(3 in istanbul and 2 in Fethiye)

Three hillside City Clubs in İstanbul: - hillside City Club/ Etiler - hillside City Club/ İstinye Park - hillside City Club/ Trio

33

TOURISM GROUP

CASH&FINANCIAL INV.


NET CASH POSITION

SELECTED FIGURES

EBITDA MARGIN (%)

REVENUES

OPERATIONAL PROFIT

EBITDA

NET PROFIT

6,6

6,4

0,2

7%

42

0,3

2,9

0,4

12 14

0,2 0,2

11,8 13,8

43 31

1,9 3,9

4,5 5,5

1,4 3,1

(1-2)

(2)

(1)

(US$ MILLION)CONSOLIDATED IFRS FINANCIALS

2,32 3,04 TL/US$ EXCHANGE RATE 1,78

31.12.2012 31.12.2014 30.09.2015

10% 17%12%

9,4

-

9,4

41

2,5

5

2

2,13

31.12.2013

33

ALARKO HOLDING CONSOLIDATED BALANCE SHEET AS OF 30.09.2015 (USD)

Shareholders Equity from Majority Interest 369.446.294

LIABILITIES AND SHAREHOLDERS’ EQUITY

DEBT TO EQUITY RATIO 0,90 CURRENT RATIO 2,60

ASSETS

814.187.643TOTAL ASSETS

Minority Interest 59.130.152TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY 814.187.643

SHORT TERM LIABILITIESA. Short Term BorrowingsB. Short Term Portions of Long Term BorrowingsC. Trade Payables- Trade Payables to Related Parties- Trade Payables to Non-Related Parties

E. Other Payables- Other Payables to Related Parties- Other Payables to Non-Related Parties

G. Period Profit Tax LiabilityH. Short Term Provisions- Short Term Provisions for Benefits Provided to Employees- Other Short Term Provisions

1.776

A. Paid In Capital 73.429.172B. Mutual Interest Capital Adjustment -258.731C. Accumulated other Extensive Revenues of Expensesthat will not be Reclassified as Profit or Loss- Profit/Losses from Revaluation and Measurement -325.424D. Accumulated other Extensive Revenues of Expensesthat will be Reclassified as Profit or Loss- Translation Differences 5.659.087- Profit/Losses from Revaluation and Classification -3.851E. Restricted Reserves Allocated from Profits 3.095.839F. Retained Earnings 306.694.110G. Net Profit/Loss For The Period -18.622.458

228.742.273LONG TERM LIABILITIESA. Long Term Borrowings 73.901.023B. Trade Payables

0- Trade Payables to Related Parties0- Trade Payables to Non-Related Parties

30.983.459- Other Payables to Related Parties10.859.903- Other Payables to Non-Related Parties

8.282.264E. Deferred Revenues 45.503.940F. Long Term Provisions

4.337.118- Long Term Provisions for Benefits Provided to Employees0

54.874.563

407.224.284CURRENT ASSETSA. Cash and Cash Equivalents 146.976.224B. Financial Investments 97.978.442C. Trade Receivables- Trade Receivables from Related Parties 5.756.994- Trade Receivables from Non-Related Parties 41.949.109D. Other Receivables- Other Receivables from Related Parties 7.484.134- Other Receivables from Non-Related Parties 5.949.039E. Inventories 47.959.231F. Expenses paid in Advance 11.958.269G. Assets related to current period tax 1.330.864H. Other Current Assets 11.436.294I. Interim Sum 378.778.600J.Long Term Assets held for Sale Purpose 28.445.684

156.868.92429.123.499

18.136.890

104.43166.095.195

1.294.994

01.674.391

35.129.2453.605.805

01.702.698

406.963.358LONG TERM ASSETSA. Financial Investments 320.299B. Trade Receivables- Trade Receivables from Related Parties 0- Trade Receivables from Non-Related Parties 782.584C. Other Receivables- Other Receivables from Related Parties 0- Other Receivables from Non-Related Parties 7.958.274D. Investments Evaluated by Equity Pick-Up Method 157.374.470E. Investment Real Estate Properties 8.787.251F. Tangible Assets 171.112.884G. Intangible Assets- Goodwill 3.957.373- Other Long Term Intangible Assets 5.437.067H. Expenses paid in Advance 952.667I. Deferred Tax Assets 42.963.525J. Other Long Term Assets 7.316.961 428.576.446SHAREHOLDERS’ EQUITY

D. Payables related to Benefits Provided to Employees

F. Deferred Revenues

I. Other Short Term Liabilities

- Other Long Term ProvisionsG. Deferred Tax Liabilities

C. Other Payables

D. Liabil ities from Investments Evaluated by Equity Pick-Up Method

34

35

ALARKO HOLDING STATEMENT OF INCOME ACCORDING TO GROUP OF COMPANIES AS OF 30.09.2015 (USD)

Income From Sales (Out of Group net)

Cost of Sales (Out of Group) (-)

Cost of Sales (In Group) (-)

CONTINUED OPERATIONS

Income From Sales (In Group net)

Investment Income

OPERATIONAL PROFIT/(LOSS)

Investment Expenses (-)

Shares in Profit/Loss of InvestmentsEvaluated by Equity Pick-Up Method

Financial Income

Financial Expenses (-)


PROFIT/(LOSS) BEFORE FINANCIAL EXPENSES

GROSS PROFIT/LOSS

Other Operating Income

General Management Expenses (-)

Marketing, Sales & Distribution Expenses (-)

Other Operating Expenses (-)

CONTINUED OPERATIONS PRE-TAX PROFIT/(LOSS)

- Period Tax Income/(Expense)

- Deferred Tax Income/(Expense)

Continued Operations Tax Income/(Expense)

CONTINUED OPERATIONS AFTER-TAX PROFIT/(LOSS)

DISCONTINUED OPERATIONS AFTER-TAX PERIODPROFIT/(LOSS)

PERIOD PROFIT/(LOSS)

MINORITY INTEREST

EBITDA MARGIN %

NET PROFIT

HOLDING

1.007.312

(973.333)

1.480.738

(212.674)

-

(1.495.527)

-

-

19.189

(1.649.016)

-

8.247.148

(577.588)

10.300.279

609%

6.039.733

5.722.805

11.650.797

11.650.797

(1.329.290)

(21.227)

(1.350.517)

10.300.279

10.300.279

-

-

(111.742)

-

-

-

TOURISM

31.455.080

(17.272.190)

6.356

(212.674)

-

(16.143)

-

-

14.173.104

(1.180.276)

(1.708.199)

3.175.142

(10.568.866)

3.890.905

3.066.369

6.008

3.896.657

3.869.821

(827.043)

23.591

(803.452)

3.066.369

3.066.369

-

-

(256)

-

-

(26.836)

INDUSTRY&TRADE

-

-

-

(212.674)

-

-

-

-

-

(270)

-

686.016

(153.715)

3.897.653

13%

532.030

5.291

4.005.398

4.004.214

(107.065)

504

(106.561)

3.897.653

3.897.653

-

-

-

3.468.076

-

(1.184)

ENERGY

45.652.837

(43.378.548)

10.721.789

(212.674)

-

(10.886.786)

-

-

2.109.293

(946.445)

-

2.782.778

(1.709.898)

(19.729.649)

8%

2.235.728

299.575

(10.062.147)

(21.542.509)

(731.103)

2.543.963

1.812.860

(19.729.649)

(19.729.649)

-

-

(69.441)

(12.528.010)

-

(11.480.362)

CONTRACTING& LAND DEV.

68.751.102

(67.026.822)

14.776.787

(212.674)

-

(7.918.217)

-

-

8.582.850

(72.331.623)

-

81.886.784

(12.326.437)

8.393.516

15%

5.811.575

8.815.392

15.787.613

15.128.495

(3.421.679)

(3.313.301)

(6.734.980)

8.393.516

8.393.516

-

-

(101.811)

1.262.456

-

(659.117)

ELIMINATION

-

(26.985.670)

(212.674)

-

20.316.673

-

-

(6.668.997)

4.133

-

(991.997)

4.857.198

(24.550.624)

-

(2.799.663)

(10.790.996)

(12.468.223)

(12.468.223)

-

147.377

147.377

(12.320.845)

(12.320.845)

-

12.229.779

-

1.122.436

-

-

-

TOTAL

146.866.332

(128.650.893)

-

(212.674)

-

-

-

-

18.215.439

(76.103.495)

(1.708.199)

95.785.871

(20.479.306)

(18.622.458)

11%

15.710.310

4.058.075

12.810.094

642.594

(6.416.181)

(619.092)

(7.035.273)

(6.392.679)

(6.392.679)

-

12.229.779

(283.249)

(6.675.041)

-

(12.167.500)

17%

36

ALARKO HOLDING STATEMENT OF INCOME ACCORDING TO GROUP OF COMPANIES AS OF 31.12.2014 (USD)

Income From Sales (Out of Group net)

Cost of Sales (Out of Group) (-)

Cost of Sales (In Group) (-)

CONTINUED OPERATIONS HOLDING TOURISM INDUSTRY&TRADE ENERGY CONTRACTING

& LAND DEV. ELIMINATIONSEAFOOD TOTAL

Income From Sales (In Group net)

1.381.445 43.242.799 - 53.616.716 317.495.195 415.736.154

(1.488.178) (25.980.846) - (55.405.871) (324.605.187) - (407.480.082)

3.002.622 14.893 - 3.463.827 34.401.776 (40.883.119) -

Investment Income

OPERATIONAL PROFIT/(LOSS)

Investment Expenses (-)

Evaluated by Equity Pick-Up Method

(212.674) (212.674) (212.674) (212.674) (212.674) (212.674) (212.674) (212.674)

- - - - - - - -

(3.037.867) (20.520) - (3.628.691) (30.124.036) 36.811.113 -

Financial Income



PROFIT/(LOSS) BEFORE FINANCIAL EXPENSES

- - - - - - - -

- - - - - - - -

GROSS PROFIT/LOSS

Other Operating Income

General Management Expenses (-)

Marketing, Sales & Distribution Expenses (-)

Other Operating Expenses (-)

(141.977) 17.256.326 - (1.954.019) (2.832.252) (4.072.006) 8.256.072

(4.400.226) (1.321.540) (97.465) (1.713.268) (109.332.940) 191.669 (116.673.771)

- (3.056.557) - - - - - (3.056.557)

4.797.880 2.825.557 933.425 5.096.505 118.000.984 9.251.677 140.906.028

(1.171.742) (13.829.733)

1.874.053

(298.956) (2.396.573) (30.735.669) 5.711.968 (42.720.706)

CONTINUED OPERATIONS PRE-TAX PROFIT/(LOSS)

- Period Tax Income/(Expense)

- Deferred Tax Income/(Expense)

Continued Operations Tax Income/(Expense)

CONTINUED OPERATIONS AFTER-TAX PROFIT/(LOSS)

DISCONTINUED OPERATIONS AFTER-TAX PERIODPROFIT/(LOSS)

PERIOD PROFIT/(LOSS)

MINORITY INTEREST

EBITDA MARGIN %

NET PROFIT 6.307.637 1.440.705 5.931.772 20.975.920 (16.457.375) 363.296 (3.778.388) 14.783.567

- 10% 11% 12% - 4% - 7%

(916.065) 537.005 (967.355) (24.899.877) 11.083.308 (13.288.933)

8.013.259 28.328 6.839 62.791 13.000.546 (7.561.708) 13.550.054

7.097.193 1.900.002 6.042.956 24.556.626 (10.279.379) 3.311.629 32.629.028

7.097.193 1.754.759 6.041.612 18.792.631 (11.885.252) 3.311.629 25.112.572

(786.039) (458.295) (56.226) (133.640) (3.348.013) - (4.782.214)

(3.517) 144.242 (53.614) 2.316.928 (1.224.109) (2.236.210) (-1.056.281)

(789.556) (314.054) (109.840) 2.183.288 (4.572.123) (2.236.210) (5.838.495)

6.307.637 1.440.705 5.931.772 20.975.920 (16.457.375) 1.075.419 19.274.077

6.307.637 1.440.705 5.931.772 20.975.920 (16.457.375) 363.296 1.072.588 19.634.543

- - - - - 363.296 (2.831) 360.465

- - - - - - 4.850.976 4.850.976

- (2.379) - (4.162.462) (158.159) - (34.577) (4.357.578)

- - 5.499.113 29.623.653 1.778.112 - (175.394) 36.725.485

- - - 6.688 - -

-

-

-

-

-

-

- -

-

- 6.688

- (145.243) (1.344) (5.770.683) (1.605.873) -

-

-

-

-

-

-

-

-

- (7.523.144)

*The figures represent Energy Generation companies; Altek, Cenal, Alarko Enerji and Alen (Trading co.)

SELECTED FIGURES

EBITDA MARGIN (%)

REVENUES

OPERATIONAL PROFIT

EBITDA

NET PROFIT

CASH&FINANCIAL INV.



(2)

(1)

(US$ MILLION)GENERATION

APPENDIX 1 - ENERGY GROUP CONSOLIDATION

TL/US$ EXCHANGE RATE

0,8

48,2

-47,4

8,0%

62,9

-2,3

5,0

-0,6

1,78

31.12.2012

17,3%

5,9

264,7

-258,8

45,7

3,1

7,9

-16,4

3,04

30.09.2015

9,6%

16,0

185,5

-169,5

53,7

-0,4

5,2

-8,3

2,32

31.12.2014

11,6%

6,3

104,5

-98,2

38,2

-1,7

4,4

-4,2

2,13

31.12.2013

38

* The figures represent Energy Distribution companies; Medaş, Alcen, Mesaş and Mepaş ** 40 Mn USD out of the 58 Mn USD Net Profit in 2012 is from group company dividend payment which is eliminated from Alarko Holding consolidated net profit

SELECTED FIGURES

20,3

58,6

-38,3

EBITDA MARGIN (%) 3,3% 12,3% 6,7%

23,2 3,7

24,6 38,0

-1,4 -34,3

REVENUES 447,3 410,8 260,7

OPERATIONAL PROFIT 10,1 46,7 15,3

EBITDA 14,8 50,3 17,3

NET PROFIT 58,2** 29,2 -3,3

CASH&FINANCIAL INV.



(2)

(1)

(US$ MILLION)DISTRIBUTION

APPENDIX 2 - ENERGY GROUP CONSOLIDATION

2,32 3,04TL/US$ EXCHANGE RATE 1,78

31.12.2012 31.12.2014 30.09.2015

9,1%

20,6

41,6

-21,0

423,5

34,6

38,7

18,0

2,13

31.12.2013

39

APPENDIX 3 - CONTRACTING GROUP

MAIN JV PARTNERS - GLOBAL CONSTRUCTION GROUPS

MAIN COMPETITORS

STRABAGAustria

ASTALDIItaly

SIEMENSGermany

IMPREGILOItaly

MARUBENIJapan

DEGREMONTFrance

HYUNDAIKorea

CAFSpain

ANSALDOItaly

OHLSpain

GS ENG. &CORP.Korea

TECNICASREUNIDAS

Spain

EBARACORPORATION

Japan

BOMBARDIERCanada

DOMESTIC GLOBAL

J&P L.L.C.-Oman, Todini-Italy,Impregilo-Italy, Salini-Italy, Astaldi-Italy,

Bechtel-USA, OHL-Spain,Hochtief-Germany, Strabag-Austria,Consolidated Contractors-Greece,

Larsen&Toubro-India

Enka, Yapı Merkezi, Gama, Doğuş,Tekfen, Yüksel, Nurol

40

41

TURKISH TOURISM SECTOR

APPENDIX 4 - TOURISM GROUP

Tourism Revenues (left axis) Tourist Arrivals (right axis)

(Mill

ion

Visit

ors)

(US$

Bill

ion)

2002 20062003 2007 20102004 2008 20112001 2005 2009 20132012 2014

ALARKO HOLDINGDISCLAIMER

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 thisPresentation with respect to the Company’s plans, strategies, beliefs and otherprospective 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-lookingstatements, whether as a result of new information, future events or otherwise.

CORPORATECOMMUNICATION

For Further Information:[email protected]

Ömer ÇELİKSenior Vice President Finance & [email protected]: +90 (212) 310 34 10

Bener DAĞLIERFinance Manager [email protected]: +90 (212) 310 34 16

www.alarko.com.tr

investor presentation · 30.10.2015 bozshakol copper ore plant project alarko kazakhstan 493 100,0...

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