Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Investor Presentation (September 2014)
38 slides from Aksa Enerji Uretim A.s's investor presentation, Sep 5, 2014
Slide 1: Aksa Enerji: The leading IPP in Turkey
Aksa Enerji The leading IPP in Turkey Investor Presentation 5 September 2014
Slide 2: Disclaimer
Disclaimer Aksa Enerji Üretim A.Ş. ("Aksa Enerji") has prepared this presentation material (the “Document”) for the sole purpose of providing information, which includes opinions and estimates and certain forward looking projections and statements relating to Aksa Enerji, the Turkish electricity mar
Slide 3: Key investment highlights
Key investment highlights 1 Part of a dedicated energy group 2 Second largest Independent Power Producer (IPP) in Turkey 3 Strong exposure to growing Turkish electricity market 4 Large portfolio with 19 operational assets totalling 2,127 MW 5 Diversified pipeline of 22 projects adding 2,058 MW to ou
Slide 4: 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
Slide 5: We are the second largest IPP in Turkey with 2,127MW installed capacity
We are the second largest IPP in Turkey with 2,127MW installed capacity IPPs by Installed Capacity 2.798 2,127 1.605 1.585 1.490 1.416 (MW) 952 826 410 365 Enerjisa Aksa Enerji İÇDAŞ Limak Eren Enerji Akenerji Cengiz Zorlu Enerji Bis Enerji AES Entek Source: Information obtained from each IPP’s annu
Slide 6: 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) 500 TWh High CAGR – High Demand: 8.4% MWh/pa 450 467 Demand Scenario 9 400 CAGR – Low Demand: 7.1% Low 425 8 350 Demand Scenario 7 300 245 6 250 CAGR: 5
Slide 7: We have 19 assets under operation across Turkey
We have 19 assets under operation across Turkey 17 KIYIKÖY 24 MW 1 2 3 AYVACIK AYRES ÇORUM-İNCESU SAMSUN 5 MW 15 MW 131 MW AKKÖY 19 13 MW 4 VAN 16 115 MW BALIKESİR KAPIDAĞ 24 MW 15 BALIKESIR ŞAMLI 114 MW Total 2,127 MW 14 MANISA KARAKURT 11 MW 13 MANISA 115 MW 18 SİİRT 24 MW 12 ANTALYA ŞIRNAK 5 1,15
Slide 8: Each of our assets has key specifications to fortify our strategy
Each of our assets has key specifications to fortify our strategy A D Baseload Natural Gas Fired PP – Antalya Wind Farms Located in a favorable wind corridor with high load factors One of the most efficient CCGT plants in Turkey, with 7 farms, with a total capacity a capacity of 1,150 MW with
Slide 9: We have a diversified pipeline of projects adding 2,095 MW to our portfolio
We have a diversified pipeline of 24 projects adding 2,095 MW to our portfolio Installed Pipeline Capacity 438 MW 2,095 MW 1,153 MW Hydro 15 projects 698 MW Wind 62 MW 5 projects Lignite 1 project 270 MW 467 MW Natural Gas 2 projects 1,041 MW 37 MW 2,052 MW Fuel-oil 1 project 24 MW (1) 2 6 7 8 23 2
Slide 10: We target to reach 3,747 MW by 2017
We target to reach 3,747 MW by 2017 and create significant cost improvement with our renewables and lignite fired PP pipeline Targeted Capacity Increases in Renewables & Lignite (MW) MW 10% 18% 22% MWh (+) 247 MW Hydro 900 4000 Further (+) 13 MW Hydro (already oper.) 800 3500 pipeline of 185 (+) 62
Slide 11: We are utilizing our own generation as well as sourcing capabilities to supply our customers
We are utilizing our own generation as well as sourcing capabilities to supply our customers Cost Structure (1H 2014) Improving Lower Cost Output TL/MWh % of 320 304 Renewables 15% 19% 33 &Sourcing 280 Average Cost: 134 4,756 GWh 240 4,139 GWh 200 160 157 3 270 120 80 80 154 36 40 80 70 36 0 351,6 N
Slide 12: Our sales mix is getting more diversified and secure
Our sales mix is getting more diversified and secure, increasing our capacity utilization Capacity Utilization 44% 58% TWh 4.76TWh Balancing Market Northern Cyprus 4 Sales Wholesale Bilateral 1.01 BSM 21% to BSM Retail Bilateral 4.2 TWh 2 Total 3.74 Contracted 79% 86% BSM 3.6 Contracted Sales 14% Co
Slide 13: 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 40x 2003 2004 2004 2004 2004 2004 2004 2004 2004 2004 2013 2014 2015 # of Bilateral Customers (2) 245 61
Slide 14: We have increased efficiencies of our CCGT plants and cut opex
We have successfully increased efficiencies of our CCGT plants and managed to cut our opex to improve our cost base 1 Low Unit Capex 3 Improving Fuel Efficiency US$m/MW US$/MWh 95 312 305 287 403 60% CCGT 0,4 90 89 54% 55% (1) Lignite 1,3 83 50% 76 Wind 1,4 77 74 70 71 44% Hydro 2,2 41% 65 40% 0,0 0
Slide 15: Tailored strategy to create sound and secure profitability
Tailored strategy to create sound and secure profitability Evolution of Capacity and Sales Mix Sales Mix Total Contracted (1) Total Contracted (1) 3,747 MW 14% 29% Lignite Shifting strategy Fortify baseload to become baseload strategy & build cost Hydro producer 71% effective pipeline Wind Total Spo
Slide 16: 1H 2014
1H 2014
Slide 17: 1H 2014 Results- Snap Shot
1H 2014 Results- Snap Shot * YoY YoY YoY 2012 2013 Change Q2 2013 Q2 2014 Change 1H 2013 1H 2014 Change Installed Capacity (MW) 2.045 2.052 7 MW 2.048 2.066 18 MW 2.048 2.066 18 MW Sales Volume (GWh) 9.784 9.109 -7% 2.174 2.298 6% 4.139 4.756 15% Capacity Utilization Rate (CUR) 60% 56% -4pp 54% 56%
Slide 18: Market Highlights
Market Highlights ►Electricity generation increased by 4% YoY in 1H14 but down by 2% QoQ. ►Ytd (8M), electricity generation was up by 5.1% YoY. ►Electricity consumption in 1H14 was parallel to electricity generation and increased by 4% YoY as well. Similar to generation, it was down 2% QoQ. ►Ytd (8M
Slide 19: Market Highlights
Market Highlights Generation by type 1H13 vs 1H14 Wind 3% Fuel-Oil Hydro 2% 18% Wind Fuel-Oil Lignite & Coal 3% 2% 29% Others Hydro 1% 28% Lignite & Coal 24% Others 1% Natural gas 42% Natural gas Inner circle: 1H 2013 47% Outer Circle: 1H 2014 ►Source of electricity generation 1H14 changed due to dr
Slide 20: Market Highlights
Market Highlights ►Total installed capacity in Turkey has increased by 2,625 MW in 1H14 to 66,633 MW, with the majority coming in from natural gas and hydro. This is an additional 4% installed capacity on top of the YE2013 figure. ►Ytd (8M), a total of 4,218 MW capacity came online taking the total
Slide 21: Market Highlights
Market Highlights Weighted Average Price (TL) ►Prices – Average prices have gone up by 7% 170 162 166 165 160 Yoy in 2Q14 due to the draught in Turkey 160 157 155 preventing a significant contribution from the 147 150 146 hydroelectric power plants. 145 140 ►However the prices are 2% weaker 135 1Q13
Slide 22: Company Highlights
Company Highlights ► At the end of Q1, we have introduced to the market a new concept of tariffs leading the sector in a new path of «price innovation». ► In 1H14, net sales of the Company has increased by 15% YoY from 4,139 GWh to 4,756 GWh due to the increased percentage of bilateral agreements in
Slide 23: Company Highlights
Company Highlights ► Kıyıköy WPP’s provisional ministry acceptance was completed on 12 August 2014, whereby 24MW was added to the generation portfolio. ► Akköy HPP’s (13MW) transfer to Aksa Enerji from Kazancı Holding was approved by EMRA at the end of August. ► With the additions of Kıyıköy and Akk
Slide 24: Company Highlights
Company Highlights ► The construction of Bolu/Göynük lignite fired power plant, which started on 13 July 2012, continues as planned. This plant will have an installed capacity of 270MW and the first phase, 135MW, is expected to be operational in December 2014. The second phase, 135MW, is planned to
Slide 25: Company Strategy Going Forward
Company Strategy Going Forward ► The company’s strategy is to increase its local and renewable resources within its production portfolio to decrease its cost base. ► To this end, we are more focused on creating new greenfield lignite fired power plant projects. We are in disccussion about the acquis
Slide 26: Catalysts and Key Events- Bolu Göynük Lignite PP
Catalysts and Key Events- Bolu Göynük Lignite PP 1st Phase Near Completion ► An installed capacity of 270MW ► SES CFB boilers & Skoda turbines ► 1st phase, 135MW, to be operational in December 2014. ► 2nd phase, 135MW, to be operational in 1Q 2015. ► CAPEX: $350mn ► Annual production volume of 2bn K
Slide 27: Catalysts and Key Events- Bolu Göynük Lignite PP
Catalysts and Key Events- Bolu Göynük Lignite PP ► On-site lignite mine ► Open pit ► Owned and operated by Aksa Enerji ► Sufficient supply of coal for the life time of the lignite PP ► Calorific value: 2400 kcal/ton ► Mine being operated for the last 5 yrs ► Coal being stored now for first fire 26
Slide 28: Financial highlights 1H 2014 Consolidated income statement
Financial highlights 1H 2014 Consolidated income statement Net sales & EBITDA (TL mn) 472 910 438 EBITDA Margin EBITDA Margin 1Q14: 15.5% 792 1H13: 16.1% 2Q14: 12.5% 1H14: 14.0% 73 55 127 128 Net Sales EBITDA Net Sales EBITDA 1Q14 2Q14 1H13 1H14 Operating income & Net income (TL mn) 46 44 75 69 25 3
Slide 29: Net financial debt and repayment schedule
Financial highlights 1H 2014 Net financial debt and repayment schedule Net financial debt (TL mn) 1.800 64% 61% 1.557 1.600 62% 1.400 1.270 1.280 1.306 59% 60% 1.138 1.200 58% 1.000 55% 55% 56% 800 54% 52% 600 52% 400 50% 200 48% - 46% 2010 2011 2012 2013 1H14 6.0 4.2 4.0 4.2 5.0 Net Financial Debt
Slide 30: Financial Highlights 1H 2014
Financial Highlights 1H 2014
Slide 31: Consolidated income statement
Consolidated income statement (TLm) 2010 2011 2012 2013 Q1 2014 Q2 2014 Net sales 911,9 1315,4 1840,6 1786,0 472,1 438,2 Cost of sales -775,5 -1088,0 -1604,0 -1565,9 -423,5 -408,0 Gross profit 136,4 227,4 236,6 220,1 48,6 30,3 Gross profit margin 15% 17% 13% 12% 10% 7% General & administrative costs
Slide 32: Consolidated balance sheet
Consolidated balance sheet (TL mn) Assets 2010 2011 2012 2013 1H 2013 1H 2014 Cash and cash equivalents 78,3 110,5 40,6 22,3 29,1 19,6 Trade receivables net 113,0 261,5 245,9 142,3 284,8 133,7 Due from related parties and shareholders 607,9 360,0 593,9 0,0 4,9 0,0 Inventory 81,3 121,5 135,5 250,0 17
Slide 33: Consolidated statement of cash flows
Consolidated statement of cash flows (TLmn) 2010 2011 2012 2013 1H2013 1H 2014 Net income (loss) before tax 84,7 -116,5 226,5 -156,1 -51,8 37,6 Depreciation and amortisation 71,7 92,5 105,3 111,8 52,5 59,2 Other adjustments 14,7 231,2 -53,1 193,9 83,9 -7,7 Change in w orking capital 18,64 -20,3 -189
Slide 34: Appendix
Appendix
Slide 35: Operating (Current)
Operating (Current) 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 120 İdil (Şırnak) İdil İki Energy Fuel-oil 24 Siirt Siirt Akköy Fuel-oil 24 Total Fuel-Oil fired power plants 233 1
Slide 36: Ongoing Investments and Revised Licence Portfolio
Ongoing Investments and Revised Licence Portfolio Planned Acquisitions from Kazancı Holding Power Plant Investment License Owner Fuel Type Additional Capacity (MW) Completion Year Planned acquisitions from Kazancı Holding Datça Licenced Kazancı Holding Wind 12 2015 Datça 12 MW wind farm licence
Slide 37: Turkish power market
Turkish power market Installed Capacity by Fuel Annual Installed Capacity Increases GW CAGR GW 23.2 70 64.0 9.4% 18 57.1 16 60 52.9 49.5 14 11.5 44.8 25,0 12.9% 52% 50 41.8 39% 12 22,0 19,0 40 17,2 10 34% 15,4 6.8 14,2 8 30 4.7 4.3 6 3.4 11.7 2.9 20 39,0 7.4% 4 3.0 48% 33,9 35,0 1,8 29,3 32,3 1.0 3,
Slide 38: Contact- Investor Relations
Contact- Investor Relations Özlem McCann IR Manager Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Selvi Çıkmazı No:10 Kavacık Beykoz, Istanbul 37
Aksa Enerji Üretim A.Ş. — Investor Presentation (September 2014) on 6ix