PRIVATE SECTOR DEBT ISSUE FEBRUARY 2016 Contents Sector
PRIVATE SECTOR DEBT ISSUE FEBRUARY – 2016
Contents • • • Sector Cagdas Faktoring at a Glance Overview Branches Financial Indicators Strategy and Growth Credit Rating Report Information on Bond Issuance Corporate Rating Report Corporate Governance Principles
Sector Overview • There are 66 factoring companies in the Turkish factoring sector as of end-2015. • The companies in the sector are subject to the rules and regulations of the Banking Regulation and Supervision Agency. • The three main characteristics of the sector, namely the guaranteed nature of receivables, collection, and procurement of working capital lead to its preference by an increasing number of producers, small-sized industrial entities, and export firms. • The Turkish factoring sector is also showing high growth. Factoring volume reached TRY 85 bn as of 9 M 15 from TRY 116 bn in 2014 and TRY 92 bn in 2013. • The asset size of the factoring sector reached TRY 27 bn as of 9 M 15 from TRY 26 bn in 2014 and TRY 22 bn in 2013. • The total equity of the sector stands at TRY 4. 6 bn. • The total number of employees in the sector is 4, 854, with 382 branches and 99, 138 clients.
Cagdas Faktoring at a Glance • Founded in 1994, Cagdas Faktoring was one of the first factoring companies established in Turkey. • The company provides advanced payments to sellers regarding invoices from domestic goods and service sales or from incentive certificate receivables of service sales. • The Company provides financing to companies within applicable domestic and international factoring rules and regulation. • Cagdas Factoring’s asset size is TRY 584 mn as of end-2015, making it the 14 th largest overall, and 6 th largest among non-bank factoring companies. The company’s share in terms of assets is 2. 16%. • Assets reached TRY 584 mn as of end-2015, growing by 27% since 2014. Assets in 2014 reached TRY 459 mn, growing by 124% Yo. Y from TRY 205 mn in 2013. • Equity increased to TRY 54. 3 mn as of end-2015 from TRY 47. 5 mn in 2014 and TRY 35. 5 mn in 2013.
Cagdas Faktoring at a Glance • The company’s revenues reached TRY 1, 703 mn as of end-2015, growing by 25% Yo. Y. 2014 revenues were TRY 1, 359 mn, corresponding to a 102% Yo. Y growth over 2013 revenues of TRY 672 mn. • Factoring receivables grew by 130% Yo. Y in 2014 to TRY 441 mn from TRY 191 mn in 2013. In 2015 they reached TRY 525 mn, growing 19% Yo. Y. • Its NPL ratio in 2015 was 5%, in line with the sector average. • The company has a total of 13 branches, 4 of which are in Istanbul. • The company has 155 employees, of which 97 work at the headquarters and 58 in branches.
Cagdas Faktoring at a Glance (k TRY) 31. 12. 2013 31. 12. 2014 y/y 31. 12. 2015 y/y Revenues 672, 293 1, 359, 280 %102 1, 703, 802 %25 Assets 205, 248 458, 903 %124 583, 928 %27 Total Placement 191, 277 441, 376 %130 525, 344 %19 35, 486 47, 528 %34 54, 328 %14 Net Income / Loss 3, 655 14, 407 %294 13, 524 -%6 Number of customers 2, 373 3, 624 %53 3, 716 %3 %7 %3 Equity Non-performing loans (NPL) Debt / Equity Ratio - %5 - 31. 12. 2013 31. 12. 2014 30. 06. 2015 30. 09. 2015 31. 12. 2015 8. 46 9. 59 10. 83 10. 61 9. 65
Cagdas Faktoring in General Ownership Structure • As of end-2015, Cagdas Faktoring’s equity is TRY 54. 5 mn and paid-in capital is TRY 30 mn, while in March 2016 its paid-in capital will be increased to TRY 40 mn. SHAREHOLDER DİKRAN GÜLMEZGİL METİN BAROKAS MELİSSA GÜLMEZGİL BAĞ NADYA GÜLMEZGİL ALEN BAĞ TOPLAM OWNERSHIP 58. 80% 20. 00% 19. 00% 1. 20% 1. 00% 100. 00% NOMINAL SHARES 17, 640, 000 6, 000 5, 700, 000 360, 000 30, 000 • There are no preferred shares at the company capital. • BOARD of DIRECTORS Dikran GULMEZGIL Chairman Prof. Dr. D. Ali ALP Vice Chairman (Independent) Erdogan OZEN Board Member and President Mehmet Cevdet GIRITLI Board Member (Independent) Melisa GULMEZGIL BAG Board Member
Branches Branch Network Ikitelli Gebze/Kocaeli Gaziantep Adana Pendik Ankara Samsun Beylikduzu Bursa Antalya Dudullu Izmir Konya
Branches Average Monthly Expense of a Branch Personnel Expense (TRY) 31, 832 Rent Expense (TRY) 3, 468 Other Expense (TRY) 5, 740 Total (TRY) 41, 042
Financial Overview Assets • Cagdas Faktoring’s assets more than doubled in 2014 to TRY 459 mn from TRY 205 mn in 2013 due to restructuring that started in 2013, and grew by 27% to TRY 584 mn as of end-2015 compared to 2014. • Asset growth in the sector was 18% in 2014 and 3% in 2015, while the Company asset growth rate is far above the sector’s. 584 Cagdas Faktoring Asset Size 459 600 500 400 205 300 200 100 0 2013 2014 2015
Financial Overview Revenues • 2014 revenues reached TRY 1, 359 mn from TRY 672 mn in 2013. As of end-2015, revenues reached TRY 1, 703 mn. • The Company ranks 6 th among the 53 non-bank factoring firms in the sector as of end-2015. It ranks 14 th among the total 66 factoring firms. Cagdas Faktoring Revenues 1703 1359 2000 1500 672 1000 500 0 2013 2014 2015
Financial Overview Factoring Receivables • Cagdas Faktoring’s receivables reached TRY 525 mn in 2015 from TRY 441 mn in 2014 and TRY 191 mn in 2013. • Receivables’ share in the sector increased to 2. 16% in 2015 from 1. 79% in 2014 and 0. 95% in 2013. • In terms of factoring receivables, The Company ranked 14 th among factoring firms in 2015, having ranked 26 th back in 2013. Cagdas Faktoring Factoring Receivables Period Çağdaş Faktoring (TRYmn) Factoring Receivables of the Sector (TRYmn) Share in the Sector 2013 191 20, 105 %0. 95 2014 441 24, 720 %1. 79 2015 525 24, 210 %2. 16 600 500 441 525 191 300 200 100 0 2013 2014 2015
Financial Overview Factoring Receivables by Client 2015 Client Number of Firms 0 -250. 000 Factoring Receivables by Check/Deed 2015 Value (TRY) Rate Check/Deed 3, 321 172, 711, 079 33% 0 -250. 000 Check/Deed 250. 000 -500. 000 199 65, 595, 755 12% 250. 000 -500. 000 Check/Deed 500. 000 -1. 000 100 67, 055, 014 13% 96 219, 982, 553 42% 1. 000 and OVER TOTAL 3, 716 525, 344, 401 100% Client risk average is TRY 141 k. Check/Deed Amount 152 days Average maturity of loans issued in 2015 119 days Rate 24, 164 454, 526, 254 87% 143 44, 102, 541 8% 500. 000 - 1. 000 Check/Deed 11 7, 312, 522 1% 1. 000 - Check/Deed 23 19, 403, 084 4% TOTAL 24, 341 Check/Deed average is TRY 21 k. Average maturity of loan obligations in 2015 Value (TRY) Cagdaş Faktoring does not have maturity, currency, or interest risk. 525. 344. 401 100%
Financial Indicators Revenues 2015 Headquarters and Branches HEADQUARTERS ANTALYA BEYLİKDÜZÜ BURSA İKİTELLİ PENDİK SAMSUN İZMİR DUDULLU GEBZE ANKARA GAZİANTEP KONYA ADANA TOTAL of BRANCHES GRAND TOTAL Revenue (TRY) Number of Employees Share in Total Revenues 1, 061, 727, 064 77, 684, 127 79, 641, 018 39, 956, 112 60, 579, 155 51, 434, 021 43, 540, 348 46, 926, 645 51, 533, 877 42, 913, 622 40, 941, 168 40, 818, 733 36, 989, 490 29, 116, 769 642, 075, 087 1, 703, 802, 150 103 4 5 4 4 4 5 2 3 4 52 155 62. 31% 4. 56% 4. 67% 2. 35% 3. 56% 3. 02% 2. 56% 2. 75% 3. 02% 2. 52% 2. 40% 2. 17% 1. 71% 37. 69% 100. 00%
Financial Overview Profitability • Cagdas Faktoring’s net income was TRY 13, 524 k as of end-2015, while it was TRY 14, 407 k in 2014 and TRY 3, 655 k in 2013. • As of end-2015, the Company’s ROE was 25%, above the sector average of 11%. And in terms of equity, it ranked 6 th among non-bank factoring firms. The company had an ROE of 10% (15% sector ROE) in 2013 and 30% (sector: 19%) in 2014. Cagdas Faktoring Sector 30% 25% 20% 19% 15% 11% 10% 15% 10% 5% 0% 2013 2014 2015
Financial Overview Key Ratios The Company’s ratios are much better than the sector’s.
Financial Overview Risk Limits of Banks As of 31/12/2015 Short Term Loans BANKS LIMIT RISK TURKISHBANK KURUMSAL 22, 000 TRY 750, 000 TURK BANKASI LTD. KIBRIS 22, 000 TRY 16, 250, 000 T. EKONOMI BANKASI BOGAZICI KURUMSAL 10, 000 TRY 9, 985, 000 FINANSBANK MECIDIYEKOY 19, 000 TRY 17, 850, 000 ALTERNATIF BANK MERKEZ 4, 000 TRY 4, 000 GARANTI BANK GROUP YEDITEPE TICARI 22, 055, 000 TRY 21, 216, 821 ISBANK GROUP BAYRAMPASA 62, 700, 000 TRY ICBC BANK LEVENT 10, 000 TRY 53, 737, 836 TRY 18, 188, 643 portion of the risk is a 7 year loan. 10, 000 GSD INVESTMENT BANK MERKEZ 25, 000 TRY 25, 000 NUROL INVESTMENT BANK MERKEZ 20, 000 TRY ODEABANK MASLAK KURUMSAL 15, 000 TRY 13, 000 ING BANK MECIDIYEKOY 9, 000 TRY 9, 000 DENIZBANK GROUP ZINCIRLIKUYU 38, 000 TRY 12, 117, 498 ANADOLUBANK BASAKSEHIR 3, 000 TRY 3, 000 BURGANBANK MECIDIYEKOY 9, 500, 000 TRY 9, 500, 000 FIBABANK GROUP BAKIRKOY 79, 500, 000 TRY 77, 677, 279 PASHA INVEST MERKEZ 5, 000 TRY 5, 000 T-BANK TURKLAND BANK SEKERBANK MERKEZ GUMUSSUYU 4, 000 TRY 3, 979, 006 3, 000 TRY 2, 683, 041 218, 000 TRY 177, 313, 728 50, 000 TRY 50, 000 NON-BANK FACTORING ISSUED SECURITIES Total 648, 755, 000 - 521, 742, 212
Financial Overview Financial Statements Company Name : CAGDAS FAKTORING AS Form Name : Balance Sheet AUDITED Currency : THOUSAND of TRY 2013 NAME ASSETS 1 CASH AND CASH EQUIVALENTS 2014 2015/6 1 5 6 0 2. 127 4. 780 4. 295 4. 051 9 FACTORING RECEIVABLES (10+14) 191. 277 441. 372 547. 848 525. 344 10 A) Discounted Factoring Receivables (11+12 -13) 189. 725 437. 564 546. 837 521. 320 11 a) Domestic 197. 780 458. 328 573. 659 548. 922 0 0 13 c) Unearned Income (-) 8. 055 20. 764 26. 822 27. 602 14 B) Other Factoring Receivables (15+16) 1. 552 3. 808 1. 011 4. 024 15 a) Domestic 1. 552 3. 808 1. 011 4. 024 29 NON PERFORMING LOANS (30+31+32 -33) 6 BANKS 12 b) International 2. 626 2. 715 12. 003 14. 979 30 A) Non Performing Factoring Loans 14. 635 15. 092 28. 753 29. 622 33 D) Special Provisions (-) 12. 009 12. 377 16. 750 14. 643 42 CURRENT ASSETS (Net) 1. 517 1. 698 29. 890 32. 082 43 NON-CURRENT ASSETS (Net) (44+45) 247 417 374 116 45 B) Other 247 417 374 116 - - 5. 511 46 Prepaid Expenses - 50 Deferred Tax Assets 2. 514 1. 113 325 54 OTHER ASSETS 4. 939 6. 803 9. 031 65 - - - 1. 103 205. 248 458. 903 604. 560 583. 928 Assets Held for Sales TOTAL ASSETS (50+51)
Company Name : CAGDAS FAKTORING AS Form Name : Balance Sheet Currency : THOUSAND of TRY NAME AUDITED 2013 2014 2015/6 2015/12 154. 719 356. 355 479. 494 476. 190 0 4 4 0 63 DEBT ISSUED (Net) (64+65+66) 11. 880 52. 301 69. 113 50. 621 65 B) ASSET BASED SECURITIES 11. 880 12. 004 0 40. 297 69. 113 50. 621 LIABILITIES 56 LOANS 57 FACTORING LOANS 66 C) Bonds 67 OTHER LOANS 1. 118 454 458 570 73 TAX PAYABLE 562 1. 081 1. 192 1. 364 74 LOAN AND OTHER PROVISIONS (75+76+77) 225 237 855 225 237 850 76 B) Employee Benefit Obligations 79 CURRENT YEAR TAX OBLIGATIONS 1. 258 943 2. 978 5 169. 762 411. 375 553. 476 529. 600 86 EQUITY (87+88+92+93+94+99) 35. 486 47. 528 51. 084 54. 328 87 A) Paid in Capital 20. 000 28. 000 30. 000 94 E) Retained Earnings (95+96+97+98) 4. 553 4. 724 5. 797 5. 836 95 a) Legal Reserves 4. 536 4. 719 5. 792 5. 767 - - 69 17 5 5 5 10. 933 18. 492 82 SUB TOTAL (55+56+57+58+63+67+68+69+73+74+78+79+80+81) 96 a) Statuory Reserves 98 d) Other Profit Reserves 99 F) Net Income/Loss (100+101) 14. 804 17. 287 100 a) Income/Loss of Previous Years 7. 278 397 10. 203 4. 968 101 b) Income/Loss of Current Period 3. 655 14. 407 7. 084 13. 524 205. 248 458. 903 604. 560 583. 928 21. 508 102 TOTAL LIABILITIES (82+83+86) 104 UNCLAIMED FACTORING TRANSACTION RISKS 66. 474 59. 644 109. 866 3. 629 2. 946 1. 513. 804 2. 739. 984 106 GIVEN COLLETERALS 49. 024 52. 024 53. 342 283. 828 125 COLLETERAL TRUSTS 215. 388 465. 114 614. 354 583. 644 105 RECEIVED COLLETERALS
Company Name : ÇAGDAS FAKTORING AS Form Name : Income Statement AUDITED Currency : THOUSAND of TRY NAME 2013 1 OPERATING INCOME (2+9+12) 40. 036 2 FACTORING INCOME (3+6) 40. 036 3 A) Interest Income from Factoring Receivables (4+5) 37. 069 4 a) Discounted 36. 916 5 b) Other 6 B) Fees and Commisions from Factoring Receivables (7+8) 2. 967 7 a) Discounted 2. 644 153 8 b) Other 16 FINANCING EXPENSE (-) (17+…+22) 16. 317 17 A) Interest Expense from Loans Outstanding 14. 583 20 D) Interest Income from Issued Securities 23 GROSS INCOME/LOSS (1 -16) 23. 719 24 OPERATING LOSS (-) (25+…+29) 12. 948 25 A) Personnel Expenses 26 B) Provision for Employment Termination Benefits Expense 28 D) General Administrative Expenses 29 E) Other 30 GROSS OPERATING INCOME/LOSS (23 -24) 31 OTHER OPERATING INCOME (32+33+34+39+40+43+44) 32 A) Interest Received from Banks 43 F) FX Transactions Gain 44 G) Other 2. 336 45 SPECIAL ALLOWANCE FOR DOUBTFUL ACCOUNTS (-) 6. 564 46 OTHER LOSS FROM OPERATIONS (-) (47+51+57+58+59) 1. 019 58 D) FX Transactions Loss 864 59 E) Other 155 60 6. 436 64 NET OPERATING INCOME/LOSS (30+31 -45 -46) PROFIT/LOSS BEFORE TAX FROM CONTINUING OPERATIONS (60+61+62) TAX ON CONTINUING OPERATIONS (±) (65+66 -67) 65 A) Taxes for the year 1. 258 66 68 83 B) Deferred Taxes (+) Net Profit/Loss from Continuing Operations (63± 64) NET PROFIT/LOSS (68+82) 1. 523 3. 655 63 323 1. 734 7. 131 26 1. 164 4. 627 10. 771 3. 248 5 907 6. 436 2. 781 2014 84. 639 79. 259 79. 234 25 5. 380 4. 882 498 43. 020 40. 906 2. 114 41. 619 18. 837 10. 899 0 1. 125 6. 813 22. 782 3. 163 6 985 2. 172 6. 609 882 0 18. 454 2015/06 57. 178 53. 388 53. 381 7 3. 790 3. 476 314 30. 585 25. 840 4. 745 26. 593 12. 200 7. 241 0 1. 012 3. 947 14. 393 2. 159 65 999 1. 095 5. 169 1. 321 0 10. 062 2015/12 124. 133 115. 766 115. 678 88 8. 367 7. 164 1. 203 70. 544 61. 100 9. 444 53. 589 26. 674 15. 594 295 2. 149 8. 636 26. 915 7. 193 149 5. 201 1. 843 12. 950 3. 752 0 17. 406 18. 454 4. 047 2. 646 1. 401 14. 407 10. 062 2. 978 0 7. 084 17. 406 3. 882 3. 031 851 13. 524
Strategy and Growth Projections 600 Cagdas Faktoring Factoring Receivables (TRYmn) 441 600 400 Cagdas Faktoring Net Income (TRYmn) 20. 0 525 [DEĞER] 20. 0 15. 0 191 10. 0 200 3. 7 5. 0 0 2013 2014 2015 2016 E 0. 0 2013 Sector Share by Factoring Receivables 2. 16% 2. 50% 13. 5 2016 E Cagdas Faktoring Revenues (TRYmn) 1850 2. 20% 1703 1. 79% 2000 2. 00% 1500 1. 50% 1. 00% 1000 0. 50% 500 0. 00% 0 2014 2015 2016 E 1359 672 2013 2014 2015 2016 E
Credit Rating Report JCR Eurasia Rating has revised the credit ratings of “Cagdas Faktoring” and upgraded its Long Term National rating to “A- (Trk)/Stable”; and its Short Term National Local Rating to A-1 (Trk)/Stable. Additionally, its Long Term International Foreign Currency and Long Term International Local Currency ratings were BBB-.
Cagdas Faktoring AS. Corporate Governance Principles Report
Cagdas Faktoring Total Debt Issue Information Issuance Date Maturity Date Value Coupon Dates Coupon Maturity Type ISIN Code 24 month maturity Asset Based Security TRPCGDF 51517 30. 05. 2013 28. 05. 2015 11, 880, 000 Quarterly Coupon Payments 29. 08. 2013 28. 11. 2013 27. 02. 2014 29. 05. 2014 28. 08. 2014 27. 11. 2014 26. 02. 2015 28. 05. 2015 14. 11. 2014 12. 05. 2015 21, 380, 000 Discounted Issue - 14. 11. 2014 13. 11. 2015 18, 620, 000 Quarterly Coupon Payments 02. 2015 31. 07. 2015 20, 000 13. 02. 2015 15. 05. 2015 14. 08. 2015 13. 11. 2015 Discounted Issue 15. 03. 2016 07. 08. 2015 05. 08. 2016 TOTAL 30, 000 20, 000 121, 880, 000 Quarterly Coupon Payments 15. 09. 2015 15. 12. 2015 15. 03. 2016 06. 11. 2015 05. 02. 2016 06. 05. 2016 05. 08. 2016 TRFCGDF 51518 Bond with 179 days maturity 16. 06. 2015 17. 03. 2015 Bond with 179 days maturity Bond with 364 day maturity TRFCGDFK 1512 TRFCGDF 71516 TRFCGDF 31619 TRFCGDF 81614
Cagdas Faktoring Bonds on Float Issue Date Maturity Date 17. 03. 2015 15. 03. 2016 Value 30, 000 Coupon Dates Quarterly Coupon Payments Coupon Maturity Type ISIN Code 16. 06. 2015 Bond with 364 day maturity TRFCGDF 31619 15. 09. 2015 15. 12. 2015 15. 03. 2016 06. 11. 2015 07. 08. 2015 05. 08. 2016 20, 000 Quarterly Coupon Payments 05. 02. 2016 06. 05. 2016 05. 08. 2016 TOTAL 50, 000 Bond with 364 day maturity TRFCGDF 81614
Information on Bond Issuance • Bond issuance of TRY 30 mn will have a variable interest rate with quarterly interest payments and maturity of 364 days.
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