GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities,...

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GLOBAL INVESTMENT HOLDINGS Investor Presentation March 2018 Copyright © 2018 Global Investment Holdings

Transcript of GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities,...

Page 1: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

GLOBAL INVESTMENT HOLDINGS

Investor Presentation

March 2018 Copyright © 2018 Global Investment Holdings

Page 2: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Who we are now 5

Who we will become 9

Who we were 3

Page 3: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Who We Were A Brokerage Firm

3

A brokerage firm

Total Assets: TL 241mn (as of 2005)

Total Equity: TL 140mn (as of 2005)

Page 4: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Who we are now 5

Who we will become 9

Who we were 3

Page 5: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Who We Are Now A Diversified Conglomerate

5

A diversified conglomerate

Total Assets: TL 4.4bn (as of 31.12.2017)

Total Equity: TL 1.6bn (as of 31.12.2017)

Page 6: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Portfolio Overview Investment Holding with a focus on Infrastructure and Energy

6

A diversified conglomerate with a successful track record in creating value for its stakeholders

Operates with a total asset size of TL 4.4bn and shareholders equity of TL 1.6bn

Port Power/Gas/ Mining

► Power

Co/Tri-generation with 58.3 MW

installed capacity

2 biomass plants with 17,2 MW

installed capacity and additional

108MV coming up by 2020

2 Solar PP projects with 14 MW

under development

Electricity wholesale & retail

► CNG Distribution

Turkey’s leading off-grid natural

gas distributor with c.19% market

share. 13 CNG stations with 148 mn

m3 sales volume

► Mining

One of Turkey’s leading players in

industrial minerals with about 650k

tons volume

Real Estate

► Sümerpark Mall: GLA 34,600 m2

$2Million/year rent revenue

► Van Mall: GLA 26,032 m2

$6Million/year rent revenue. Operates

with 99% occupancy rate

► Denizli SkyCity Office Project:

Construction area: 35,843m2

► Sümerpark Housing: Construction

area: 105,000m2

► Vakıfhan No:6 Lease period: 2019

► Salıpazarı Global Building

► Denizli Hospital Land: 10,745m2

► Denizli Final Schools: 10 years lease

to Final Schools – Construction area

of 11,200m2

Brokerage/ Asset Mgt

► Global Securities: one of the leading

independent brokerage firms with a

pioneer position in Turkey

► Actus Asset Management: one of the

leading independent asset

management companies serving multi

national and Turkish corporate

investors with an innovative product

portfolio ( AUM: TL644mn)

► World’s largest cruise port operator

with 13 cruise and 2 commercial ports

in 7 countries

► c.7m pax annually with dominant

presence in the Med

► Listed on London Stock Exchange

(USD600mn Mcap)

Portfolio:

Barcelona: Highest turn around pax

in Europe

Venice: One of the 3 main hubs of

Mediterranean

Valletta: Growing home port

operations

Singapore: One of the 3 main home

ports of Asia

Lisbon: Significant homeport in the

Atlantic

Antalya: The largest export

commercial ports in Turkey

Ege: Largest cruise port in Turkey

Bar, Bodrum, Cagliari, Catania,

Malaga, Ravenna

Page 7: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings

► A diversified conglomerate with an agile investment strategy

maximizing shareholder value.

► Has evolved into a dynamic investment vehicle with interests in a

variety of nascent business sectors and traditional non-bank

financial service providers,

► Current portfolio of assets includes commercial and cruise ports,

energy, real estate and financial services offering high growth with

‘first mover’ advantages.

► Lean management facilitates swift decision making and timely

response while extracting maximum value by successful exit.

► Listed on the Istanbul Stock Exhange (‘GLYHO’).

Shareholding Structure as of 10/03/2018

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Centricus 30.68%

Mehmet Kutman* 21.92%

Treasury Shares 7.82%

Other 39.57%

*Disclosed together with the shares of Turkcom Turizm Enerji İnşaat Gıda

Yatırımlar A.Ş. which is owned by Mehmet Kutman

Board of Directors: Mehmet Kutman (Chairman), Erol Göker, Ayşegül Bensel, Adnan Nas, Serdar Kırmaz, Oğuz Satıcı (Independent), Ercan Ergül (Independent)

• Corporate Governance Committee : Ercan Ergül (Chairman), Ayşegül Bensel, Adnan Nas, Aslı SU ATA

• Audit Committee: Oğuz Satıcı (Chairman), Ercan Ergül

• Early Risk Assessment Committee : Oğuz Satıcı (Chairman), Adnan Nas

Confirmed Overall Company Rating: 9.05 (out of 10)

Sub-sections Rating

Shareholders (25%) 92.7

Public Disclosure and Transparency (25%) 92.01

Stakeholders (15%) 90.93

Board of Directors (35%) 87.74

Global Yatırım Holding A.Ş. (GIH) Istanbul – September 26, 2017

Long Term International Foreign Currency BBB- / (Stable Outlook)

Long Term International Local Currency BBB- / (Stable Outlook)

Long Term National Local Rating BBB+ (Trk) / (Stable Outlook)

Long Term National Issue Rating BBB+ (Trk)

Short Term International Foreign Currency A-3 / (Stable Outlook)

Short Term International Local Currency A-3 / (Stable Outlook)

Short Term National Local Rating A-2 (Trk) / (Stable Outlook)

Short Term National Issue Rating A-2(Trk)

Sponsor Support 2

Stand Alone B

Corporate Governance Rating - Kobirate

JCR Eurasia

Page 8: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Centricus Strategic Partnership

Centricus;

► an investment platform backed by a global network of financials and strategic

investors

► aims to achieve superior absolute returns with a long-term investment horizon

► has access to significant capital and deal flow through its global network

► positioned to take advantage of opportunities resulting from distortion in credit

markets caused by monetary and regulatory policies

8

Investors

Banks

Corporates

Asset Managers

Deal sourcing

through expansive

global network

Challenge and

support

management to

reach its goals

Execution of

business plan with

provision of capital

and management

expertise

Investment

selection based on

prudent due

diligence

Structured origination and investment process

Financial Services Infrastructure Technology

Investment in financial assets Targeting high quality assets in

infrastructure domain that have stable and

attractive returns with long duration

Raising funds, investing and transforming

the technology sector

Centricus targets high absolute returns in three core sectors

Representative Acquisitions:

• CIFC Asset Management

• Halkin Asset Management

• Fortress (advisory role)

Representative Acquisitions:

• Global Investment Holdings

Representative Transaction:

• Softbank Vision Fund

(fundraising, structuring and advisory role)

Page 9: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Who we are now 5

Who we will become 9

Who we were 3

Page 10: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

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We intend to stay focused on our strategic sectors

• 125MW targeted installed capacity by 2020 in

biomass power generation, of which 17.2MW

is operational

• 58.3MW combined heat-power capacity in 9

locations. Targeted installed capacity: 250MW

• Selectively participate in major renewable

tenders such as the recently announced YEKA

Wind and the future YEKA Solar projects

• Acquire mid-to-big ticket operating and brown-

field renewable assets with long feed-in tariff

periods

• Become a significant medium to long term

player in under-electrified Sub-Saharan Africa

• Partnership with an international player in CNG

business

Continue aggressive growth in the

Caribbean and Asia, consolidate the

market further while looking for

horizontal growth in port/passenger

related businesses

• Double the number of ports and triple the

numbers of passengers in the mid-term

• Sail for the American continent, and reproduce

the success we achieved in the Med

• Implementing B2C and B2B revenue

opportunities to improve passenger experience

at our cruise ports, similar to the strategies

successfully implemented by airport operators

• Delivering growth and cash from the

commercial ports services, capacity utilization

and taking advantage of recent investments

• Continuing to enhance the competitive

advantage achieved through first-mover

advantage

PORT CLEAN ENERGY

Developing green energy projects

with attractive long-term feed-in

tariffs and innovative energy

efficiency solutions

ASSET MGT

Grow in asset management

with our partner Centicus

• Create Turkey’s largest asset manager

levering Global Investment Holding-Centricus

partnership

• Acquire independent asset management

companies to boost AuM in the shirt term

• Create an infrastructure fund for international

investors that will invest in infrastructure

projects with significant treasury guarantees

• Acquire market share in pension industry

benefiting from re-allocation of asset

management services for pension funds

• Feed pension funds with alternative

investment funds that will be mandatory for

auto-enrollment funds

Page 11: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Capabilities & Strategy

11

Strategy

Fast Mover First Entrant

Unique position as industry

consolidator in its port

operations

Effective recognition of attractive

investment opportunities in rapidly

growing sectors

Proven track record of

successful exits

No specific geographic or

sector-bound limits

Dynamic

Investment portfolio unlike

any other traditional holding

company

► Expansion in all our portfolio companies

► Create a worldwide & class asset (consolidating the cruise port industry around the globe)

► Attach a value to at least one of our portfolio companies

► Create regional / international entities with the core focus on infra fund and renewable energy / clean energy

Always prioritize the

potential for future

growth

A dynamic investment vehicle with

interests in a variety of budding

business sectors

Immediately responding to a

continuously changing

business environment and

achieving operational

efficiency

Page 12: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

The evolution of key financial indicators

12

1,334

1,978

2,599

3,439

3,890

4,371

2012 2013 2014 2015 2016 2017

TL

m

Total Assets

166

247

357

552

630

806

2012 2013 2014 2015 2016 2017

TL

m

Turnover

737 726 743

975 913

1,595

2012 2013 2014 2015 2016 2017

TL

m

Total Equity

208190

111

218231

278

2012 2013 2014 2015 2016 2017

TL m

EBITDA

Page 13: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Financial Highlights

(TL mn) As of 31.12.2017

13

Net revenues 9M 2017 4Q 2017 9M 2016 4Q 2016 FY 2017 FY 2016 %change

Power / Gas / Mining 243.7 64.7 170.4 54.4 308.4 224.8 37%

Ports 316.2 108.3 264.7 82.4 424.5 347.0 22%

Brokerage & Asset Management 29.2 12.2 23.6 6.7 41.4 30.3 36%

Real Estate 21.6 9.9 18.6 7.2 31.4 25.8 22%

Holding stand-alone 0.0 0.0 0.0 0.0 0.0 0.0 NA

Others 0.4 -0.2 1.9 0.1 0.3 2.1 -88%

GIH total 611.0 194.9 479.2 150.8 805.9 630.0 28%

Operating EBITDA 9M 2017 4Q 2017 9M 2016 4Q 2016 FY 2017 FY 2016 %change

Power / Gas / Mining 11.3 1.6 24.0 3.0 13.0 26.9 -52%

Ports 206.6 68.0 169.4 60.0 274.6 229.5 20%

Brokerage & Asset Management 1.2 0.5 -7.3 -2.0 1.8 -9.3 NA

Real Estate 15.2 5.4 12.7 5.4 20.6 18.1 14%

Holding stand-alone -22.4 -3.9 -19.2 -12.5 -26.3 -31.7 17%

Others -4.1 -1.2 -2.8 -0.5 -5.3 -3.3 -60%

GIH total 208.0 70.4 176.7 53.4 278.4 230.6 21%

Page 14: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

The evolution of key financial indicators

14

Debt Position

As of 31.12.2017

Holding standalone debt (TL m) Currency Interest Rate Year of

Maturity Amount TL mn US$ mn

Eurobond, net USD fixed 2022 12.8 3.4

TL bond TL floating 2019 14.8 3.9

TL bond TL floating 2018 50.0 13.3

Secured bank loans EUR floating 2019 (1) 116.4 30.9

Gross debt 194.1 51.4

Cash and Cash Equivalents 105.5 28.0

(I) - Net Financial Debt (TL m) - standalone 88.5 23.5

Project Company debt by segment (TL m) 2018 2019 2020 2021 2022+ Amount TL mn US$ mn

Ports 90.0 63.3 61.6 983.3 93.6 1,291.7 342.5

CNG/Power/Mining 107.2 53.5 50.6 47.4 77.1 335.7 89.0

Real Estate 29.7 20.5 20.2 19.4 53.8 143.6 38.1

Gross debt 226.8 137.3 132.4 1,050.0 224.5 1,771.1 469.5

Cash and Cash Equivalents 428.6 113.6

(II) - Net Financial Debt (TL m) - project company (TL m) 1,342.5 355.9

(I) + (II) - Consolidated Net Debt (TL m) 1,431.0 379.4

Page 15: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

PORTS

Page 16: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

16

Global Ports Holding Plc (GPH) Snapshot

7

Countries

23%

Market share in

Mediterranean

13

Operating

cruise ports

Passengers

7.0m

2

Operating

commercial ports

Global Investmet Holdings 60.60%

EBRD 5.03% Free Float

(LSE) 34.37%

Page 17: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Global Ports Holding Plc (GPH) World’s largest independent cruise port operator

Ports: Location Overview

CROATIA

MONTENEGRO

TURKEY

Singapore

Singapore

MALTA

GPH Cruise Ports

SPAIN

PORTUGAL

ITALY

GPH Commercial Ports

Barcelona

Malaga

Lisbon

Venice

Ravenna

Catania

Valletta

Kusadasi

Bodrum Antalya

Cagliari

Bar

2 out of Top 5 Mediterranean Cruise

Ports

(2016 Pax, ’000s)

GPH Cruise Ports

1,428

1487

2110

2204

2,712*

Venice

Marseille

Balearic Islands

Civitavecchia

Barcelona

Source: Company Information. Note: (*) # of pax including all 6 piers of the city; GPH operates 5 of them

Dominant Position in the Mediterranean Cruise Port Landscape and Established

Foothold in Asia

17

Page 18: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

.

I

K

D E

J B K

C A

KI

HH

Singapore G

F

18

Global Ports Holding Plc (GPH) World’s largest independent cruise port operator

Bodrum Cruise Port

Cruise, ferry and mega-yacht

port located on Turkey's

Aegean coast, near one of

Turkey's most popular seaside

resorts

Pax 2017:123k

End of concession: 2019

(subject to extension to 2057)

Malaga Cruise Port

Concession of the three

cruise terminals of Port of

Málaga; boarding, unloading

& billing of passengers and

luggage management

Pax 2017: 510k

End of concession: 20442

Ege Ports Kuşadası

Busiest cruise port in Turkey,

located near Ephesus and

the House of the Blessed

Virgin Mary, both major

tourist attractions

Pax 2017: 189k

End of concession: 2033

Barcelona Cruise Port

One of the largest cruise

homeports; operates 5

cruise terminals of the Port

of Barcelona

Pax 2017: 1,884k

End of concession:

2026 (WTC,2050),

2030 (Adossat,2053)

Lisbon Cruise Port

Port of call for cruises;

operates three cruise

terminals and a new

terminal completed in 2017

Pax 2017: 521k

End of concession: 2049

Singapore Cruise Port

The operation of Terminal

Marina Bay Cruise Centre in

Singapore

Pax 2017: 878k

End of concession: 2022

(applied for 5-year extension,

with high likelihood of

approval)

Valletta Cruise Port

Significant cruise operations

with more than 20%

turnaround

Pax 2016: 779k

End of concession: 2067

Antalya Cruise Port

High capacity commercial

port with a dominant position

in export traffic for its

hinterland. Also active in

cruise operations

Pax 2017: 40k

End of concession: 2028

Venice Cruise Terminal

One of the 3 main hubs of

Mediterranean

Pax 2017: 1,428k

End of concession: 2024

(potentially 2060)

Bar Cruise Port

Montenegro’s main sea port

Pax 2016: 11k

End of concession: 2043 (with

an extension option)

Italian Cruise Ports

Cagliari, Catania, Ravenna

Small-medium size operations

Pax 2017: 553k End of concession: 2020 to 2027

A B C

D E F

G H I

J K

Creuers Ports

Page 19: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Global Ports Holding Plc (GPH) Strategically Located Commercial Port Operations

19

• Strategically located on the Southern coast

of Turkey with lack of direct competition

• High speed rail link to expand catchment

area

• Akdeniz is currently focused on diversifying

its cargo base

• Located within a Free Zone regime with

significant benefits

• Important link for regional intermodal

transport to inland capitals

• Benefits from local steel, aluminium

exports and automotive manufacturing

Source: Company information.

1.Point to point distance on land. 2. Over 200 marble mines are operating in the hinterland. 3. Dry bulk, general cargo and container volumes; Metric tons. Includes contribution from container handling, converted from TEU to

tons at a ratio of 1:14.38.

Po

rt o

f A

dri

a-B

ar

(Mo

nte

ne

gro

)

Port-Adria-Bar Competitor Ports

Italy

Montenegro

Port-Adria

Macedonia(FYROM)

Bosnia andHerzegovina

Serbia

Rijeka

Split

Dubrovnik Bulgaria

Romania

Albania

Croatia

Belgrade

Bar-Belgrade Railway and Road

Page 20: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Americas: • 13.7M Pax

• 199 Ships

• 54.5% Market Share of which 38.9% Caribbean/Bahamas

Asia Pacific/Australia: • 4.7M Pax

• 45 Ships

• 18.5% Market Share of which 15.7% Asia Pacific

Europe:

• 6.8M Pax

• 121 Ships

• 27.0% Market Share of which 13.6% Mediterranean

Strategy

• GPH’s stronghold (12 ports, 6.2M Pax.in

2017)

• Focus on marquee ports and expansion

• Regional shift from East to Mid/West

Mediterranean

Strategy

• First mover in fast growing market

• Established foothold in Asia (GPH

Singapore – 0.9M Pax. in 2017)

• Seeking assets around main regional home

ports (e.g. Singapore, Shanghai, Hong

Kong etc.)

Strategy

• Establish presence in largest

cruise market

• Seeking one or more marquee

ports to penetrate the market

Source: Seatrade Insider, Cruise Industry News 2016-2017 State of the Industry Annual Report, Industry data, EIU, CLIA UK & Ireland, CLIA Europe, Cruise Market Watch 2017. .

12%

41%

2012-2017 2017-2027

14%

65%

2012-2017 2017-2027

202%

64%

2012-2017 2017-2027

Regional

Growth by Pax.

Capacity

Global Ports Holding Plc (GPH) Broaden geographic reach beyond Mediterranean

20

Page 21: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

6 acquisitions

since

November

2015

12 out of 14

acquisitions

since 2003 in

uncompetitive

tenders or

bilateral

negotiations

Project Funnel

Closing and Induction Concession Agreement &

Financing Negotiations Pre-Feasibility/Due Diligence Project Screening

Americas

Europe

Asia/Pacific

6 Ports

2 Ports

2 Ports

4 Ports

1 Port

1 Port

4 Ports 2 Ports

Global Ports Holding Plc (GPH) Strong Pipeline with Clearly Identified Opportunities

21

Page 22: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

89% 89% 82%

2015 2016 2017

Global Ports Holding Plc (GPH) Resilient Financial Profile with High Margins and Strong Cash Conversion

CAGR

10%

nan

22

3.2 3.5

4.1 4.8

6.6 7.0

2015 2016 2017

Consolidated Basis Ports in which GPH has an interest

105.0 114.9

116.4

47.0 53.6 50.3

58.0 61.2 66.1

2015 2016 2017

Cruise Commercial

74.0 80.9 80.5

34.0 36.9 32.2

40.0 44.0 48.3

2015 2016 2017

Cruise Commercial

6%

4%

Total Segmental

EBITDA margin

70.5% 70.5%

Resilient financial profile with high margins and strong cash conversion

69.2%

Passenger growth (PAX m) Revenue Development(USD m)

Segmental EBITDA Development (USD m) High Cash Conversion

CAGR

Page 23: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Power/Gas/Mining

Page 24: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

7.3 7.3 10.5 13.3 13.3 2.3 3.7

2.7 5.6

9.2

Hydro Wind Geothermal Biomass Solar

FIT for Electricity Max. FIT for Use of Domestic Equipment

Power: Biomass High Biofuel Potential in Turkey & Competitive Advantage

24

► GIH holds an important competitive advantage in the biomass

sector in Turkey:

i. First mover in current and potential locations: electricity

generation from agricultural (mainly cotton and corn) residues,

animal manure, and forestry residues using combustion and

steam cycle technology - not employed by many players in the

Turkish market

ii. Integrated value chain under one roof including biomass

collection and plant operation

iii. High availability due to well proven technology: moving grate

boiler, steam turbine generator

iv. 49 years license with price guarantee through feed-in tariff at 13.3

US cent/kwh for initial 10 years

v. Facilities are located in close proximity to important supply areas

in Turkey

vi. Collects biomass from diversified sources with own equipment

and personnel in addition to selected subcontractors

vii. Secures supply chain via long-term agreements (c.10 years) with

General Directorate of Agriculture

Local Farmers

Regional Forestry Directorates

(*) Plants that become operational by 2020 will be eligible to benefit from the FIT for a period of

10 years following their commercial operation date. Domestic equipment support is applicable

for the initial 5 years of operation.

Source: Energy Market Regulatory Authority (EMRA)

3,435 4,361

3,781

7,619

3,666

Soke Urfa Mardin Konya Adana

'000 tonnes

Potential to generate c.

~2.300MW with the existing

biofuel

Source: Turkish Statistical Institute

Current Biofuel Volume in Regions GIH is Present

Total fuel availability:

22.8m tonnes

17.2 125

2017 2020E

MW

GIH Installed Capacity Development

9.6 11.0 13.2

18.9 22.5

US

cent

Feed-in-Tariff*

Page 25: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Power : Biomass Our facilities are located in close proximity to important supply areas in Turkey

25

Aydin

Soke Konya

Adana

Urfa Mardin

Operational: Söke I (12MW), Urfa I (5,2MW)

Under Construction: Söke II (12 MW), Mardin I (12MW)

Under Development: Konya (24MW), Adana (24MW)

Urfa II (24MW), Mardin II (12MW)

Total annual fuel

availability: 3.4mn

tonnes, of which Global

Energy will use c. 5%

p.a. once fully rolled-out

Total annual fuel

availability: 7.6mn

tonnes, of which Global

Energy will use c. 2%

p.a. once fully rolled-out

Total annual fuel

availability: 3.6mn

tonnes, of which Global

Energy will use c. 5%

p.a. once fully rolled-out

Total annual fuel

availability: 4.3mn

tonnes, of which Global

Energy will use c. 5%

p.a. once fully rolled-out

Total annual fuel

availability: 3.7mn

tonnes, of which Global

Energy will use c. 4%

p.a. once fully rolled-out

► Portfolio approach provides diversification with respect to fuel supply and operating performance

Page 26: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

operational

Under construction/development

Samsun

10,1MW

Çerkezköy

6,7MW

Ankara

4,0MW

Bandırma

8,7MW

İzmir

6,7MW

Van

1,6MW

Uşak

11,0MW

Istanbul

4MW

Lüleburga

z 5,35MW

Power: Tres biggest co/trigeneration supplier with 58.3MW

26

► Established in 2013 and is 93.7% owned by GIH – remaining share is

owned by a local partner

► Offers power generation solutions via combined heat and power plants

(cogeneration/trigeneration) to end customers

► BO/ BOT model implementation in various types of facilities, both public

and private – industrial facilities, hospitals, shopping centres, hotels,

offices, etc. Operates according to unlicensed regulation.

► Total installed capacity is 58,3MW

► Designs, constructs and operates turn-key small-to-mid-size power

plants for industrial and commercial customers consuming power for

electricity, heating and cooling purposes. Capex per MW is USD 500-

700k

► Works with clients via long-term bilateral contracts securing fixed

savings in percentage terms to benchmark market prices (electricity or

natural gas) 12,1

16.8 15.4

58.3

250,0

2013 2014 2015 2017 2025

MW

Industrial 84%

Shopping centre 16%

58,3 MW

Customer Breakdown by Sector and Capacity

Development of Installed Capacity

5.4

6.7

10.1

11.0

6.7

8.7

1.6 4,4

4.0

MW

Customer 9

Customer 8

Customer 7

Customer 6

Customer 5

Customer 4

Customer 3

Customer 2

Customer 1

Page 27: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Power: Solar 2 ongoing projects

27

2 projects located in Mardin/Turkey and Bar/Montenegro

Mardin, SPP Project:

► Earned bid for licensed solar project in 2015

► Total installed capacity will be 10.5 MWp (9MWe at substation)

► Facility spans over a 17 hectare area

► Pre-licence obtained in late 2016

► Expected COD: 3Q2018

► Price guarantee through feed-in tariff at 13.3 USD cent/kwh for 10

years

► CAPEX per MW is c. USD 1.0m

Bar, Port of Adria SPP Project:

► First international project of the energy group under GIH

► Development of a solar power plant on rooftops of existing

warehouses at the port

► Total installed capacity will be 5MW

► Price guarantee through feed-in tariff at 12 EUR cent/kwh for 12 years

► In the process of permit applications by state authorities

► Expected COD 4Q2018

► CAPEX per MW is c. USD 1m

Mardin SPP settlement plan: 17 hectare spot in close proximity to

city center

Bar SPP settlement plan: 9 warehouses with a total area of 66,000

sqm (actual area utilisation: 37,000 sqm)

► 100 MW capacity under development in unlicensed solar sector

► 3,000 MW solar capacity to be proposed to the state in accordance with

the YEKA program

Other Projects in the Pipeline:

Page 28: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Gas: Naturelgaz - CNG

► The company focuses on sale and distribution of bulk CNG to

industrial and commercial customers.

► Naturelgaz was launched in 2005 and reached 16 mn m³/year

sales volume in 2011, whereas in 2017 this figure increased to

148mn m³/year.

► GIH became the majority shareholder (94.4%) in 2011 and the

company achieved the largest CNG distribution contract in

Turkey by converting Çaykur, the tea producer public company,

plants from LNG

► Boasting an 80% share in the CNG market, it distributes CNG to

more than 500 customers such as factories, power generators,

hotels and asphalt plants that have no access to the natural gas

pipeline.

► Main customers are municipalities, bus operators and logistic

fleets.

► Supplies the required technology to convert heavy and mid-size

commercial vehicles with diesel engines (trucks, lorries, buses

and mini-buses) into CNG

► Operates a fuelling station network of mother and daughter

stations in the central and western part of Turkey

Strategy

► Become Europe’s largest CNG distributor, carrying the

experience and investments to the surrounding market

► Supply CNG to remote towns in Turkey, in cooperation with local

gas distributors, where there is no natural gas distribution

infrastructure

► Grow by mother-daughter Auto CNG station model and

developing projects in cooperation with OEM producers and

conversion companies.

220 employees

13 Mother CNG plants

42,000 round trips

50,000 CNG cylinders

42 CNG Compressors

~9 times increase in sales

volume in 5 yrs between 2011 -

2016

Naturelgaz captures 19% share

from Turkey’s LNG + CNG

market

Naturelgaz CNG Plants / Auto CNG Stations Network

CNG sales (mn m³)

Revenue (mn USD)

28

11

58

2011 2017

16

148

2011 2017

Page 29: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

► GIH entered Turkey’s mining sector through the acquisition of 75%

stake in Straton Maden in June 2013.

► Straton Maden is among the top five feldspar producers in Turkey

with 550,000tons of annual feldspar production of which 80% is

exported.

► Straton Maden has substantial feldspar reserves, mine processing

facilities and commercial teams based in the West Aegean region

of Turkey.

► Feldspar is a crucial ingredient for the quality manufacturing of

ceramics and glass, reducing the manufacturing temperature and

saving vast amounts of energy as well as carbon emissions.

► Turkey is the global leader in feldspar mining with 5mn tons of

production. Turkey’s feldspar exports to Spain, Italy, Russia and

the Far East amounted to 3.2% of Turkey’s overall mine exports.

Strategy

► Aims to become a leading player in the global feldspar market by

extracting feldspar in the most efficient and environmentally

responsible manner

► To this ends, Straton Maden has completed an investment program

that includes establishment of new separation and enrichment

facilities besides expansion of existing production capacity.

► By way of the new facilities under operation, Straton Maden plans

to gradually increase feldspar sales over the next two years and

more than double its current annual production volume entering

various new export markets in order to become one of the leading

players in the sector.

► Geographical expansion into new markets such as the Far East

Mining: Straton - Feldspar

29

388 405

626

2015 2016 2017

Sales Volume Developments (000 ton)

Page 30: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Asset Management Segment

Page 31: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Asset Management: Actus

ACTUS

► Actus is one of the three biggest asset management company among 35 independent asset managers in Turkey

► AUM: c. TL644mn

► Actus is the founder of Turkey’ first infrastructure fund invested in a healthcare PPP project in Turkey. Investments of

the Fund in the Project Company compose of equity investments and a subordinated shareholder loan that qualifies as

mezzanine financing

► Actus is the founder of Turkey’s first corporate venture capital fund investing in technology firms with a vision of being a

global player

► Managing 3 pension, 5 mutual, and 2 alternative investment funds as well as several discretionary mandates, Actus is

the only full fledged asset manager in Turkey

Strategy

► Besides organic growth, Actus’ strategy is to acquire independent asset management companies to boost AuM in the

short term

► Launch a Turkish regional infra fund up to USD 1bn jointly with Centricus

► Benefit from the government subsidized growth of the pension system to reach TL 6bn AUM by 2019 excluding infra

fund

31

Page 32: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

REAL ESTATE

Page 33: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Real Estate

Denizli Sumerpark Complex

The project is a mixed-use complex development including a commercial

mall spanning over 98,400m² land in Denizli, southwest of Turkey.

The Mall:

GLA: 34,600m2

Total asset size: 43mn USD

Offices (SkyCity):

GLA: 8,633m2

Total asset size: 49mn USD

Vakıfhan VI

The project is based on a ROT type office re-development of a 1,700 m²

building located in Karakoy, Istanbul. The restoration was completed in

August 2006 and is currently 100% leased.

GLA: 8,633m2

Total asset size: 1mn USD

Van AVM

It is the first shopping mall project in Van. Since its opening, Van AVM has

attracted more than 18 million visitors since opening, reaching an

occupancy rate of 99%.

GLA: 26,032m²

Total asset size: 50mn USD

The Residence:

GLA: 34,421m²

Total asset size: 9mn USD

Commercial:

GLA: 27,854m2

Total asset size: 10mn USD

33

Page 34: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Brokerage

Page 35: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Brokerage: Global Securities

Global Securities ► Global Securities is an independent company that provides capital market brokerage services to individuals

and corporates; local and international investors.

► Global Securities has received 40 international awards with its many accomplishments in Turkey, among

which “The non-bank intermediary institution with the biggest trading volume since the foundation of Borsa

Istanbul” in 2010.

► Has mediated close to 80 corporations establish an initial public offering, has also contributed with 5bn USD

to the Turkish Capital Market.

Strategy

Configured with the vision of being a pioneer of the sector in Turkey, Global Securities holds the strategy of

serving its clients with the accumulation of information and experience in the capacity of being a leading and

dependable brokerage institution.

35

Page 36: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

APPENDIX

Page 37: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

37

Balance Sheet

(TL Million) 31 Dec 2017 31 Dec 2016

Current Assets 940.6 628.8 Cash and Banks 439.9 209.0 Marketable Securities 5.5 12.1

Trade Receivables 195.3 134.7 Inventories 98.3 82.1

Other Receivables and Current Assets (1) 201.7 190.9

Non-current Assets 3,430.5 3,261.6 Financial Assets 5.4 4.3

Investment Properties 379.7 414.3

Tangible Fixed Assets 930.2 754.5 Intangibles and Concession properties 1,799.1 1,733.0 Equity Pickup Investments 93.2 67.8

Goodwill 72.0 64.1 Deferred tax assets 92.3 90.5 Other receivables and non-current assets (2) 58.5 133.1

TOTAL ASSETS 4,371.0 3,890.4

Short term liabilities 729.5 1,032.8

Financial debt 451.0 793.4

Trade Payables 172.8 147.8 Accrued liabilities and other payables 105.7 91.7

Long term liabilities 2,046.7 1,945.0

Financial debt 1,537.0 1,465.9 Provisions and other long term liabilities (3) 107.8 88.6 Deferred tax liabilities 401.9 390.5

Total Shareholders' Equity 1,594.8 912.6 Paid in capital 325.9 193.5 Treasury shares -41.0 -19.9

Reserves 547.8 356.6

Previous years' profit/loss 483.1 88.6 Profit/(loss) for the period -329.2 -129.9

Minority Interest 608.1 423.7

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,371.0 3,890.4

(1) held for sale assets, non-trade receivables including related parties, tax receivables and others

(2) long term non-trade receivables including related parties, advances, prepaid expenses and others

(3) non-trade payables including related parties, long term provisions and other liabilities

Page 38: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

Income Statement

38

(TL mn) FY 2017 FY 2016

Total gross revenues 805.91 629.99

Cost of sales and services -564.04 -409.92

Gross Profit 241.87 220.07

Operating expenses -244.72 -188.18

Other operating income/(loss), net -207.96 -7.67

Equity pickup asset gains/(losses) 10.37 7.28

Gross operating profit/(loss) -200.45 31.50

Financial income/(expenses), net -203.53 -172.86

Profit/(loss) before tax -403.98 -141.36

Taxation 17.58 5.75

Profit/(loss) after tax -386.40 -135.61

Minority interest -57.24 -5.71

Net profit/(loss) for the period -329.15 -129.90

Operational EBITDA 278.4 230.6

Page 39: GLOBAL INVESTMENT HOLDINGS · Company Overview Shareholding Structure, Strategic Priorities, Corporate Governance & Ratings A diversified conglomerate with an agile investment strategy

The information contained in this document has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this document. This document may also contain certain forward-looking statements concerning the future performance of Global Investment Holdings (“GIH” or “the Group”) and should be considered as good faith estimates. These forward-looking statements reflect management expectations and are based upon current data. Actual results are subject to future events and uncertainties, which could materially impact GIH’s actual performance.

GIH, and its respective affiliates, advisors or representatives, shall have no liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. GIH undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Therefore you should not place undue reliance upon such statements.

Disclaimer

For further information, please contact:

Investor Relations

Global Yatırım Holding A.Ş.

Rıhtım Caddesi No. 51

Karakoy 34425 Istanbul, Turkey

Google Maps: 41.024305,28.979579

Phone: +90 212 244 60 00

Email: [email protected]

Website: www.globalyatirim.com.tr

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