Ulusoy Electriculusoyelektrik.com.tr/Uploads/Other/PageDocument/yatirimci-sunumu... · August 2017 2Q17 Results Sector (Export) 12 • Diversified and Sustainable Export • Transformer

Ulusoy Electric2Q 17 Results

August 2017

Enis UlusoyBoard Member & Deputy General Manager

Table of

Contents

2Q17 Highligts

Sector and Ulusoy Elektrik

Financials

1

6

19

2Q17 Highlights

August 2017 2Q17 Results

2Q17 Highlights

5

• Significant Growth with record high 2Q Revenues

• Increased margins, 28,5% EBITDA

• Government Focus & Priority in Energy Investments

• Stronger Position in the domestic market with new competition environment

• Electricity Distribution Company Investments

• Diversified Exports

• Strong Order Book for the upcoming quarters

Sector and Ulusoy Elektrik


Sector (Domestic)

8

ELECTRICITY DISTRIBUTION COMPANIES

Investment Implementation PeriodInvestmentBudget (TL)

2006-2010 (before privatization) 550 M

2011-2015 3,69 B

2016-2020 18,4 B2016 (official investment result) 3,7 B

2016 Q2 Dist.Co. Sales 2017 Q2 Dist.Co. Sales

18.2 M TL 31,1 M TL % 71

*2017 expectation + 4 Billion


Sector (Domestic)

9

DISTRIBUTORS

2016 Q2 Distributor Sales 2017 Q2 Distributor Sales

10.6 M TL 20,9 M TL % 97

• Positive Economic Environment• Residential & Industrial Investments• New Distributors


Sector (Domestic)

10

DIRECT SALES

2016 Q2 Direct Sales 2017 Q2 Direct Sales

13.6 M TL 31,8 M TL % 135

• Photo-Voltaic & Wind Electricity Generation Projects • 500 MW Wind Project in the coming 5 years (already been awarded)• 1000MW YEKA tender (generation & turbine production)


Sector (Domestic)

11

2016 Q2 DOMESTIC REVENUE BREAKDOWN BY CUSTOMER SEGMENTS

43%

25%

32%

Q2 2016

Dist.Co. Distributors

Direct Sales

83,8 M TL 42.4 M TL

% 98

37%

25%

38%

Q2 2017

Dist. Co. Distributors

Direct Sales


Sector (Export)

12

• Diversified and Sustainable Export• Transformer as a driving force for export markets• Indonesia Certification Completed• Recovering Middle East & North Africa Markets• New Import Regime in Algeria

1Q’17

41%

9%7%

5%

4%

4%

4%

4%

4%

19%

Jordan Morocco Turkmenistan

Lithuanian Algeria Sudan

Iraq Mauritania Palastine

Other 17 Countries

26%

22%

11%

5%

4%

4%

3%

4%

8%

3% 10%

Iraq Kosova Sudan

Finlandiya Kazakhstan Uzbekstan

Lithuania (Russia) Mauritania France

iran Other 19 Countries

2Q’17


Sector (Export)

13

EXPORT REVENUES

Q2 2017Q1 2017

18.7 M 17.2 M-%7,5

2Q 2016 2Q 2017

20.7 M 35.9 M% 73

Appx. 1,5M shift VUK to IFRS


Local & Int’l Competition

14

Local Players

Global Players

Ormazabal

HQ in Spain

Family-run business

Region: Global

Elko ( BANKRUPTED )

Family-run business

HQ in Ankara

Region: Turkey, Turkmenistan, Iraq

~20% Market Share

Elimsan

2016 Revenue 157M TL

Owned by Saudi Cable

HQ in Ankara

Region: Turkey, Qatar

~15% Market Share

Schneider

HQ in France

Publicly listed

Region: Global

Siemens

HQ in Germany

Publicly listed

Region: Global

ABB

HQ in Switzerland

Publicly listed

Region: Global

Ulusoy Electric

Market Share

from 40%

Reached to 60%


Revenue Breakdown

15

TL mn Q2'17 Q2'16 change

Cable Accessories 1,4 1,0 33%

Concrete Compact Substations 12,7 5,4 137%

Distribution Transformers 13,7 3,1 349%

Metal Clad 4,0 2,1 89%

Metal Enclosed 44,8 26,6 68%Other Sales(Trade Goods, Auxilary Materials) 11,4 5,0 130%

Railway Overhead Line Equipments 0,5 0,3 74%

RMU 11,9 7,1 68%

Metal Compact Substations 1,6 0,0 n.a.

Total 102,0 50,5 102%


TRANSFORMER FACTORY

16

*Varies on ratings and types

FY 2016 2017 Q1 2017Q2 2Q 2017

863 173 699 872

TRANSFORMER PRODUCTION UNITS

FY 2016 2017 Q1 2017Q2 2Q 2017

13 4,2 13,7 17,9

TRANSFORMER REVENUES (M TL)

46%54%

domestic

export

AVG. UNIT PRICE*

20.527 TL5.800 USD

REVENUE BREAKDOWN


Strong Orderbook

17

2017 Q2 ORDER INTAKE

DOMESTIC EXPORT

72 M TL

Q1 2017 Q2 2017 Q1 2017 Q2 2017

21.5 M TL19 M TL107.5 M TL

Financials


Financial Statements

18

TL mn Q2'17 Q2'16 change

Revenues 99,5 50,2 98%Domestic 83,8 42,4 98%Export 17,2 8,2 110%

Gross Profit 32,4 11,1 192%Operating Profit 27,1 7,2 276%EBITDA 28,3 8,4 237%Net Income 21,5 6,1 252%

Gross Margin 32,5% 22,2% 46,4%Operating Margin 27,2% 14,3% 90%EBITDA Margin 28,5% 16,6% 72%Net Margin 21,6% 12,2% 77,0%

Depreciation&Amortization 1,2 1,1 0,1Financial Income/(Expense) n.a.CAPEX 1,5 0,5 200%


42,4

83,88,2

17,2

Q2'16 Q2'17

Domestic Export

Revenue (TL mn)

19

99,5

50,2

+98% 98% growth in Revenues

110% growth in Domestic Revenues

98% growth in Export Revenues


Revenue (TL mn) price vs volume

20

34,5

62,2

+7

+21

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

1Q16 Revenues Volume change Price change 1Q17 Revenues

TLm

n


Revenue (TL mn) price vsvolume

21

50,5

102,0

+10

+41

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

Q2'16 Revenues Volume change Price change Q2'17 Revenues

TLm

n


Margin Evolution (%)

22

20,5% 22,2%

32,5%

Q2'15 Q2'16 Q2'17

Gross margin

10,3%

16,6%

28,5%

Q2'15 Q2'16 Q2'17

EBITDA margin


Financial Ratios

23

TL mn Q2'17 Q2'16

Net Debt Position

Cash&Equivalents 23,8 9,3

Financial Debt 7,2 6,9

Net Debt -16,7 -2,4

Financial Ratios

Current Ratio 2,02 1,76

Net Debt/Equity -0,11 -0,02

Current Assets/Total Assets 0,68 0,56

Current Liabilities/Total Liabilities 0,96 0,96

Total Liabilities/Total Assets 0,35 0,33

ROE 38,8% 17,2%

Margins

Gross Margin 32,5% 22,2%

Operating Margin 27,2% 14,3%

EBITDA Margin 28,5% 16,6%

Net Margin 21,6% 12,2%


Quarterly Revenues Breakdown since 2012

24

1Q is the weakest while 4Q is the strongest quarters

25,631,7

26,9

47,843,3

65,570,4

74,2

55,1

43,6

30,7

47,6

24,232,1

42,645,6

35,1

50,254,1

88,4

67,1

99,5

0

20

40

60

80

100

120

1Q 2Q 3Q 4Q

Quarterly Revenues (TLmn)

2012 2013 2014 2015 2016 2017

• Since 2012, 1Q revenues constituted 19.9% of total sales during the year.



Quarterly Revenues Breakdown since 2012

25

Despite high base effect (thehistorically highest revenues in 4Q16), QoQchange was modest, thanks to favorable domestic market dynamics.

25,6

43,3

55,1

24,2

35,1

67,1

31,7

65,5

43,6

32,1

50,2

99,5

26,9

70,4

30,7

42,6

54,147,8

74,2

47,6 45,6

88,4

0

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017

Quarterly Revenues (TLmn)

1Q 2Q 3Q 4Q




Quarterly Revenues Changes since 2013

26

-9%

-26%

-49%

-23%-24%

51%

-21%

33%43%

98,00%

7%

-30%

33%

8%5%

55%

7%

63%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

2013 2014 2015 2016 2017

Revenues change (Quarterly)

1Q 2Q 3Q 4Q

• On average, 2Q revenues declined by 27% QoQ since 2013.

• On average, 4Q revenues increased by 35% QoQ since 2013.

Despiteseasonality factor, growthmomentum remainedstrong…


Shareholder Structure

53,0%

18,4%

14,3%

14,3%

(2)

(3)

(4)

(1)

Pre IPO Post IPO Current

27

Sait Ulusoy Akgül Ulusoy

Kubilay Hakki Ulusoy

Enis Ulusoy

70,0%

30,0%

Family Free Float

88,8%

11,2%

Family Free Float

Thank YouFor further information please e-mail

[email protected]

or call Ulusoy Electric Investor Relations

at (+90 312 267 0712)

Documents

Ulusoy Electriculusoyelektrik.com.tr/Uploads/Other/PageDocument/yatirimci-sunumu... · August 2017 2Q17 Results Sector (Export) 12 • Diversified and Sustainable Export • Transformer