Aksa Enerji Uretim A.s. · BIST:AKSEN

Aksa Enerji Uretim A.s — H1 2016 Earnings Presentation

38 slides from Aksa Enerji Uretim A.s's earnings presentation, Aug 19, 2016

  1. Slide 1: 1H2016 Investor Presentation

    1H2016 Investor Presentation 19 August 2016

  2. Slide 2: Key investment highlights

    Key investment highlights 1 Part of a dedicated energy group 2 Largest quoted Independent Power Producer (IPP) in Turkey 3 Strong exposure to growing Turkish electricity market 4 Large portfolio with 16 operational assets totalling 2,198 MW 5 Diversified pipeline of 8 projects adding 538 MW to our p

  3. Slide 3: We are part of a dedicated energy group

    We are part of a dedicated energy group  Entered energy business in 1960s with the production of generating sets  Focused only on the energy sector since then  Gradually expanded into main segments of electricity & natural gas Kazancı Group  Excellent track record in building and integrating ene

  4. Slide 4: We are the largest quoted IPP in Turkey with 2,198 MW installed capacity

    We are the largest quoted IPP in Turkey with 2,198 MW installed capacity IPPs by Installed Capacity 3.600 2.940 2.198 (MW) 1.774 1.665 1.490 1.211 952 392 364 Enerjisa Limak Aksa Enerji Zorlu Enerji İÇDAŞ Eren Enerji Akenerji Cengiz Enerji Ayen Enerji AES Entek Source: Information obtained from each

  5. Slide 5: We provide strong exposure to the growing Turkish electricity market

    We provide strong exposure to the growing Turkish electricity market 1 Strong Electricity Demand Growth (1) 2 Increasing per Capita Consumption (2) TWh 500 CAGR – High Demand: 7.3% 463 High Demand MWh/pa 450 Scenario 9 400 8 Low 350 7 264 381 Demand 300 Scenario 6 250 CAGR: 5.3% 5 CAGR – Low Demand:

  6. Slide 6: We have 16 assets under operation across Turkey

    We have 16 assets under operation across Turkey 1 KIYIKÖY 16 27 MW BOLU-GÖYNÜK 270 MW 2 15 AYVACIK AYRES ÇORUM-İNCESU 5 MW 15 MW 3 BALIKESİR KAPIDAĞ 24 MW 4 BALIKESIR ŞAMLI 114 MW Total 2,198 MW 5 MANISA KARAKURT 11 MW 6 ŞIRNAK 14 MANISA 115 MW 24 MW 7 13 ANTALYA MARDIN-2 ŞANLIURFA 11 33 MW 1,150 MW

  7. Slide 7: Each of our assets has key specifications to fortify our strategy

    Each of our assets has key specifications to fortify our strategy A Baseload Natural Gas Fired PP – Antalya D Wind Farms  Located in a favorable wind corridor  One of the most efficient CCGT with high load factors plants in Turkey, with a capacity of  7 farms, with a total capacity of 259 1,150 M

  8. Slide 8: We have a diversified pipeline of 8 projects adding 538 MW to our portfolio

    (2) We have a diversified pipeline of 8 projects adding 538 MW to our portfolio Current Installed Total Installed Capacity Pipeline Capacity 616 MW (2) 604 MW 12 MW 2.736 MW (2) Hydro 81 MW Wind 45 MW 96 MW HFO 490 MW 304 MW 2,198 MW 270 MW 7 1 7 1.412 MW 2 HFO 1 Hydro 1 Hydro 1 Wind 5 Wind 4 Wind 2

  9. Slide 9: We target to create significant cost improvement with our lignite fired PP and renewables pipeline

    We target to create significant cost improvement with our lignite fired PP and renewables pipeline Targeted Capacity Increases in Renewables & Lignite (MW) MW 10% 12% 20% 28% MWh (+) 81 MW Hydro 700 4000 (+) 45 MW Wind 600 3500 (+) 490 MW HFO 2.1x 135 270 3000 500 81 2500 400 16 135 2000 96 Installe

  10. Slide 10: Company Highlights - Cost Structure (TL)

    Company Highlights - Cost Structure (TL) Cost Structure vs. Sales Price (1H 2016) Improving Lower Cost Output % of Weighted Avg. Weighted Avg. Renewables Cost 141,5 Sales Price 170,2 Local 70% 70% Sourcing TL/MWh 200 190,8 7,647 GWh 25,8 160 152,7 147,6 5,768 GWh 130,7 57% 32,6 4.374 120 23,2 variab

  11. Slide 11: Company Highlights - Sales mix and prices (TL)

    Company Highlights - Sales mix and prices (TL) Capacity 44% 80% (adj) Utilization TWh 15 14 TWh 14 Balancing Market 13 Northern Cyprus BSM 36% 12 Sales 5 Wholesale Bilateral 11 to BSM 10 Retail Bilateral 9 4.2 TWh 8 7 6 Total Contracted 64% 5 86% 3.63.6 Contracted BSM 4 9 Sales 3 2 14% Contracted 0.

  12. Slide 12: We are shifting bilateral mix towards more profitable commercial clients

    At the same time, we are shifting bilateral mix towards more profitable commercial clients Increasing Contracted Volume Supported by Evolution of Eligibility Limit Affiliated Distribution Regions 1.5x # of Bilateral 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 245 610 1,275

  13. Slide 13: We have successfully increased efficiencies of our CCGT plants and managed to cut our OPEX

    We have successfully increased efficiencies of our CCGT plants and managed to cut our OPEX to improve our cost base Low Unit Capex Improving Fuel Efficiency US$m/MW TL/MWh 56% 180 54% CCGT 0,4 160 52% Wind 1,4 140 50% 48% 120 Lignite 1,5 46% 100 44% Hydro 1,6 80 42% 2010 2011 2012 2013 2014 2015 0,0

  14. Slide 14: Corporate Bond Issue - Short term FX debt refinanced in TRY

    Corporate Bond Issue- Short term FX debt refinanced in TRY 18/11/2015 28/06/2016 TRSAKSNK1714 TRSAKSN61815 TRSAKSN61914 TRY 135,000,000 TRY 60,000,000 TRY 140,000,000 728 days (2 years) 729 days (2 years) 1093 days (3 years) Variable interest Variable interest Variable interest Due to high demand, t

  15. Slide 15: Madagascar PPA - 20 year contract with generation in 2017

    Madagascar PPA – 20 year contract with generation in 2017  20 year power purchase agreement (PPA) in the Republic of Madagascar with Jiro Sy Rano Malagasy (Jirama), the state- owned electricity and water services company.  Established a 58,35% subsidiary in the Republic of Mauritius (Aksaf Power L

  16. Slide 16: Ghana PPA - To provide fast track USD based cash generation

    Ghana PPA- To provide fast track USD based cash generation  5 year power purchase agreement (PPA) with Republic of Ghana for installation of a 370 MW HFO plant, electricity generation and the guaranteed sale of this energy.  Approved by the parliament of Republic of Ghana  Can be extended before

  17. Slide 17: Ghana PPA - Technical Developments to Date

    Ghana PPA- Technical Developments to Date  Maintenance and dismantling of all equipment sent to Ghana were undertaken by Aksa Energy.  To date, over 375 containers of equipment are sent to the field, which entered the country exempt from all taxes.  Stack steel structures and radiators’ procureme

  18. Slide 18: Ghana PPA - Technical Developments to Date

    Ghana PPA- Technical Developments to Date  Switchyard civil works are completed.  Stack 2 steel structure fabrication is already completed.  Switchyard pylons, surge arrester steel supports are already installed.  Isolators’ erection is already completed.  2 pcs of set-up transformers are alrea

  19. Slide 19: What to Expect in 2H16

    What to Expect in 2H16  Natural gas price decrease- Aksa Energy expects a 5-10% decrease in 4Q16.  Local coal incentive- The incentive kicked in at 185TL/MWh to be purchased as of 22 Aug.  New thermal capacities (600 MW imported coal) to become operational. Effects of natural gas price decrease :

  20. Slide 20: 2016 Guidance – Financials

    2016 Guidance – Financials  Sales: 15.4 TWh  Revenues: TRY 2.5 bn  Average Aksa Price: TRY 164 (vs expected average market price of TRY 135)  CAPEX: USD 150 mn  EBITDA: TRY 480 mn 19

  21. Slide 21: Tailored strategy to create sound and secure profitability

    Tailored strategy to create sound and secure profitability Evolution of Capacity and Sales Mix Total Contracted (1) Total Contracted (1) 14% Shifted strategy Fortifying baseload 23% to become baseload strategy & building cost producer effective pipeline 77% Total Spot (2) 86% 2.736 MW Total Spot (2)

  22. Slide 22: The Sector 1H 2016

    a K S a ENERGY The Sector 1H 2016 Aksa Energy The Leading IPP in Turkey

  23. Slide 23: Market Highlights - Generation & Consumption

    Market Highlights- Generation & Consumption  Electricity generation and consumption both increased by 5% YoY in 1H16. Generation (GWh) Consumption (GWh) 140.000 131.139 140.000 133.588 124.884 126.967 120.000 120.000 100.000 100.000 80.000 80.000 60.000 60.000 40.000 40.000 20.000 20.000 - 0 1H15 1

  24. Slide 24: Market Highlights - Installed Capacity Changes

    Market Highlights - Installed Capacity Changes Wind Hydro 6% 34% Others 1H2016 3% Fuel-oil  Total installed capacity in Turkey has reached Installed Capacity 1% 76,550 MW in 1H16, indicating a 7% increase YoY. 76,550 MW Coal & Lignite 22% Natural Gas 34% Capacity Changes (1H15-1H2016) Fossil Renewa

  25. Slide 25: Market Highlights - Prices

    Market Highlights - Prices Weighted average prices were 2.5% lower YoY in 1H16 due to: Weighted Average Price (TL) 176 180,0 173  1,159 MW new renewable capacity 170,0 162 166 160 156 (378 MW HEPP+ 439 MW WEPP + 257 MW Solar+ 88 160,0 149 158 151 150,0 147 MW Geo-thermal) 140,0 146 132  (Increased

  26. Slide 26: Financial & Operational Highlights 1H 2016

    Financial & Operational Highlights 1H 2016

  27. Slide 27: 1H 2016 Results - Snap Shot

    1H 2016 Results - Snap Shot * Adjusted Adjusted Adjusted Adjusted Adjusted 1Q15 1H15 9M15 FY15 1Q16 2Q16 QoQ Change 1H15 1H16 YoY Change Installed Capacity (MW) 2.151 2.160 2.192 2.076 2.211 2.198 -13 MW 2.160 2.198 38 MW Sales Volume (GWh) 3.013 5.768 9.925 14.018 4.178 3.886 -7% 5.768 7.647 33% Ne

  28. Slide 28: 1H 2016 Results – Sales Breakdown

    1H 2016 Results – Sales Breakdown * 1Q 2016 2Q 2016 1H 2015 1H 2016 MWh TL/MWh MWh TL/MWh MWh TL/MWh MWh TL/MWh Northern Cyprus 174.808 212,1 176.372 221,5 339.393 278,7 351.180 216,8 Renewable Market (YEKDEM) 231.572 214,8 142.760 223,4 204.531 171,1 374.331 218,1 BSM (Spot Market Sales)* 257.364 2

  29. Slide 29: Financial highlights 1H2016 Consolidated income statement

    Financial highlights 1H2016 Consolidated income statement Net sales & EBITDA (TL mn) 1.302 EBITDA Margin EBITDA Margin 576 1H15: 21.8% (adj) 2Q15: 28.1% 503 1H16: 16.9% 2Q16: 18.0% 856 142 104 228 220 Net Sales EBITDA Net Sales EBITDA 2Q15 2Q16 1H15 1H16 Operating income & Net income (TL mn) 163 133

  30. Slide 30: Financial highlights 1H2016 Net financial debt and repayment schedule

    Financial highlights 1H2016 Net financial debt and repayment schedule Net financial debt (TL mn) 76% 76% 3.000 80% 61% 62% 70% 2.500 2.686 55% 55% 52% 2.501 60% 2.000 50% 1.500 1.781 40% 1.270 1.280 1.306 30% 1.000 1.138 20% 500 10% - 0% 2010 2011 2012 2013 2014 2015 1H16 6.0 4.2 4.0 4.2 5.2 5.8 6.3

  31. Slide 31: Consolidated income statement

    Consolidated income statement (TL mn) 2011 2012 2013 2014 2015 1H 2015 1H 2016 Net sales 1315,4 1840,6 1786,0 1957,4 2320,0 856,4 1302,1 Cost of sales -1088,0 -1604,0 -1565,9 -1710,8 -2001,6 -678,8 -1155,4 Gross profit 227,4 236,6 220,1 246,6 318,3 177,6 146,8 Gross profit margin 17% 13% 12% 13% 14%

  32. Slide 32: Consolidated balance sheet

    Consolidated balance sheet Assets (TL mn) 2012 2013 2014 2015 1H 2015 1H 2016 Cash and cash equivalents 40,6 22,3 34,2 48,5 31,4 84,2 Trade receivables net 245,9 142,3 88,7 182,6 52,1 178,0 Due from related parties and shareholders 593,9 0,0 4,4 0,0 8,3 31,0 Inventory 135,5 250,0 269,2 319,3 364,9 3

  33. Slide 33: Consolidated statement of cash flows

    Consolidated statement of cash flows (TLmn) 2011 2012 2013 2014 2015 1H2015 1H2016 Net income (loss) before tax -116,5 226,5 -156,1 26,6 -234,6 -72,0 -7,3 Depreciation and amortisation 92,5 105,3 111,8 121,5 145,2 66,6 86,3 Other adjustments 231,2 -53,1 193,9 82,0 314,6 193,0 36,4 Change in w orking

  34. Slide 34: Appendix

    a K S a ENERGY Appendix Aksa Energy The Leading IPP in Turkey

  35. Slide 35: Licence Portfolio (Operational)

    Licence Portfolio (Operational) Power Plant License Owner Fuel Type Installed Capacity (MW) % Mardin-1 Aksa Energy Fuel-oil 32 Mardin-2 Rasa Elektrik Fuel-oil 33 Northern Cyprus Aksa Cyprus Fuel-oil 153 İdil (Şırnak) İdil İki Energy Fuel-oil 24 Total Fuel-Oil fired power plants 242 11% Antalya NGCC

  36. Slide 36: Ongoing Investments and Revised Licence Portfolio

    Ongoing Investments and Revised Licence Portfolio Planned Acquisitions from Kazancı Holding Additional Capacity Completion  Planned acquisition from Power Plant Investment License Owner Fuel Type (MW) Year Kazancı Holding:  Datça 12 MW WPP Datça Licenced Kazancı Holding Wind 12 2016 licence 12 Und

  37. Slide 37: Contact - Investor Relations

    Contact- Investor Relations Özlem McCann Director Investor Relations and Corporate Communications Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Özalp Çıkmazı No:10 Kavacık Beykoz, Istanbul 36

  38. Slide 38: Disclaimer

    Disclaimer Aksa Enerji has prepared this presentation for the sole purpose of providing information, which contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these s

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