Akenerji Elektrik Uretim A.s. · BIST:AKENR
Akenerji Elektrik Uretim A.s — Investor Presentation (2021)
29 slides from Akenerji Elektrik Uretim A.s's investor presentation, 2021
Slide 1: Akenerji Elektrik Üretim A.Ş. 2021
AKENERJİ ELEKTRİK ÜRETİM A.Ş. 2021 www.akenerji.com.tr
Slide 2: Company Overview
COMPANY OVERVIEW ➢ Private Energy Company 1.224 MW active power capacity (Natural gas, Hydro and wind) 904 MW CCGT launched in 2014 198 MW hydro at development stage ➢ Role in Market • Established in 1989, one of the largest and most experienced players in the market. • Single-handedly has the capab
Slide 3: Strong Shareholder Synergy
STRONG SHAREHOLDER SYNERGY AKKÖK GROUP CEZ GROUP ➢ CEZ is the largest Czech corporation, and an ➢ One of the biggest industrial groups in Turkey international utility among the largest in Europe by market cap. ➢ Active in several sectors with main focus on Chemicals,Energy,Real Estate,Port Operation
Slide 4: Akenerji Highlights
AKENERJI HIGHLIGHTS ➢ Diversified and flexible portfolio mix ➢ Experienced trading staff ➢ Profitability Margins have been expanding thanks to renewables in the portfolio ➢ The total capacity of 320 MW renewable portfolio enables Akenerji to avoid 1 million tons of CO2 release. Akenerji completed i
Slide 5: Operations and Investments
OPERATIONS and INVESTMENTS WPP HPP CCGT Ongoing project Kemah HPP project with a capacity of 198 MW is in the development phase. Ayyıldız Extention WPP with a capacity of 13 MW has started to operate in Jan 2017 . Operational 2021 Generation Capacity 24% Capacity [MW] Power Plants [MWh] Diversificat
Slide 6: Sales & Pricing Assumptions
SALES & PRICING ASSUMPTIONS Akenerji has 4 main types of sales channels : eligibles, wholesale customers, YEKDEM and DUY system. ELIGIBLE SALES DUY SALES ➢ Tariff for Eligible customers is set as a function of the ➢In the DUY Market, since the price is set by the generation company government’s tari
Slide 7: Capacity & Sales Development
CAPACITY & SALES DEVELOPMENT ➢ With the completion of Erzin Project and Ayyıldız WPP Extension, Akenerji’s power generation capacity has increased to 1.224 MW. ➢ In 2013 (an average year in terms of precipitation), average capacity utilisation rate calculated as 32 % for hydros and 35% for wind powe
Slide 8: Erzin Highlights
ERZIN HIGHLIGHTS ➢ Erzin is a 904 MW, natural gas Combined Cycle Power Plant ➢ The plant is the largest investment of Akenerji ➢ One of the most efficient plant in Turkey with a desirable coastal location, located in Erzin/Hatay, in the south of the country ➢ The plant has been operational in July 2
Slide 9: Trends & Expectations in Energy Market
TRENDS & EXPECTATIONS IN ENERGY MARKET 9
Slide 10: Demand for Energy Is Driven by Emerging Markets
DEMAND FOR ENERGY IS DRIVEN BY EMERGING MARKETS ➢ Energy Outlook 2022 is focused on three main scenarios: Accelerated, Net Zero and New Momentum-which explore a wide span of possible outcomes as the world transitions to a lower carbon energy system. ➢ Energy consumption is projected to increase more
Slide 11: Demand Growth & Potential
DEMAND GROWTH & POTENTIAL Consumption per Person (MWh)* ➢ Electricity consumption is mainly effected by GDP growth, population growth, urbanization, climate change and efficiency applications. GDP 2013 2014 2015 2016 2017 2018 2019 2020 2021 Turkey 4.2% 2.9% 6.1% 2.9% 7.4% 2.6% 0.9% 1.8% 11.0% EU 0.
Slide 12: Turkey Growth Trends
TURKEY GROWTH TRENDS ➢ In the last 21 years, electricity consumption increased remarkably, pointing to a CAGR of 4,4%. ➢ TEIAS forecasts an average annual consumption growth rate is around 3,4 % per year for 2022 to 2029 period. As consumption growth is susceptible to global downturns, the imbalance
Slide 13: Turkey Consumption Dynamics
TURKEY CONSUMPTION DYNAMICS Electricity Consumption Trend ➢ Prior to 2013, GDP growth was generally realized parallel to yet below the electricity demand growth. This trend reversed in 2013, when GDP growth rate surpassed the electricity demand growth. This trend change mainly stemmed from the sourc
Slide 14: Generation Characteristics
GENERATION CHARACTERISTICS Turkey's Installed Capacity by Generation Companies (MW) Fuel Sources of Electricity Generation (2021) 67.7% ➢Today, substantial amount of the electricity produced in Turkey is generated through state- owned/operated power plants. ➢ Currently, the majority (97%) of natural
Slide 15: Electricity Market Mechanism
ELECTRICITY MARKET MECHANISM TRY/MWh ➢ The official electricity tariffs (for residential /commercial/industrial use) are set by the government every 3 months. Most of the consumption can be contracted outside of the official markets based on the DUY** prices different from the tariffs. ➢ NG tariffs
Slide 16: YEKDEM Mechanism
YEKDEM MECHANISM YEKDEM: Turkish Renewable Energy Resources Support Mechanism YEKDEM prices based on facility (USD /MWh) ➢ Predictable returns on renewable energy investments thanks to YEKDEM Law, offering guaranteed prices for 10 years after commissioning. ➢ Legislation deploys a differentiated fee
Slide 17: Decreasing Appetite in YEKA Tenders & Privatizations
DECREASING APPETITE IN YEKA TENDERS & PRIVATIZATIONS Privatizations: 2017 – 410 mio USD, 2018 – 65 mio USD, 2019 – 0, 2020 – 1.6 mio USD, YEKA tenders: 2017: Tenders realized; 1000 MW Solar 1, 1000 MW Wind 1 2018: Tenders cancelled; 1000 MW Solar 2, 1200 MW Offshore Wind 2019: Tender realized; 1000
Slide 18: Capacity Mechanism
CAPACITY MECHANISM The purpose of the mechanism is to establish the necessary and sufficient installed power capacity for the provision of security of supply in the market and to safeguard the installed power capacity for the purpose of ensuring long-term system security. ➢Only 46 Power Plants (11 C
Slide 19: Market Liberalization Schedule
MARKET LIBERALIZATION SCHEDULE Turkish Energy Market deregulation is developed after the UK Model and has been proceeding as per below schedule. Privatization & Liberalization should be expected to start to help create a transparent & competitive market environment. Liberalization NG Market Tender f
Slide 20: Current Privatization Overview
CURRENT PRIVATIZATION OVERVIEW The aim of the GenCo privatizations is to increase the efficiency in the market and provide cheap electricity to the end-user. GenCO DisCO ➢ 37% of Turkey’s capacity should be offered to the private ➢ Privatization of 21 DisCos were completed. sector. ➢ The Goverment h
Slide 21: Natural Gas Market Mechanism
NATURAL GAS MARKET MECHANISM ➢ Currently, the majority (97%) of natural gas is being imported by BOTAS(Govt. Natural Gas Company) >> limited alternative for supply and competition in the market. ➢ The official natural gas tariffs for electricity generators are set by BOTAS and updated on a monthly b
Slide 22: Akenerji Financial Information
AKENERJI FINANCIAL INFORMATION 22
Slide 23: Financial Performance
FINANCIAL PERFORMANCE Net Sales (mio USD) 509 459 443 2017 2018 2019 2020 2021 Net Sales (mio TRY) 3.918 2.216 2.188 1.855 | 1.823 2017 2018 2019 2020 2021 Ebitda (mio USD) 2017 Ebitda (mio TRY) 61 58 44 2018 2019 2020 409 346 213 128 || 2017 90 2021 795 2018 2019 2020 AKKOK | 2021 Net Profit (mio U
Slide 24: Profitability Performance
➢ PROFITABILITY PERFORMANCE In the last five years, Akenerji incurred yearly min 7% and max 20% Ebitda Margin with its diversified portfolio. ➢ Inflow coming to reservoirs in 2017 was lower than the long term average, Akenerji could succeed 7% Ebitda Margin. ➢ Although 2018 proved difficult for the
Slide 25: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Debt Structure (mio USD) 2017 2018 2019 2020 2021 Cash 12 4 15 29 51 Short-term Financial Debt 101 212 31 35 39 Long-term Financial Debt 751 645 828 793 655 Net Debt -841 -854 -843 -799 -642 Key Ratios 2017 2018 2019 2020 2021 Current Ratio 0,3 0,2 0,5 0,6 1,0 Leverage 2,1
Slide 26: Stock Performance
STOCK PERFORMANCE ——TEDAS Tariff/BOTAS Tariff - Partnership with CEZ - Egemer and SEDAS acquisition 700% 600% Stock Performance —pist | - 859 mio USD Refinancing —tnergy DUY market introduction 500% 400% 300% 200% 100% 0% T7080 Te-das teune Te oz-28q oz-das oz-unr Ooze 61-280 61-das er-une 61-1 8-92
Slide 27: Stock Performance vs DUY Prices
STOCK PERFORMANCE vs DUY PRICES - 859 mio USD Refinancing 27
Slide 28: Abbreviations
ABBREVIATIONS WPP CCGT USD mio$ PP EMRA EBITDA : TRY : Megawatt : Terawatt hours : Natural Gas : Gross Domestic Product : Compound Annual Growth Rate : Electricity Market Balancing and Settlement Regulation System : Distribution Companies : Turkish Radio - Television Corporation : Hydroelectric Powe
Slide 29: Akenerji Investor Relations
AKENERJI INVESTOR RELATIONS Akenerji Elektrik Üretim A.Ş. Miralay Şefik Bey Sok. No:15 Akhan Nilüfer AYDOĞAN 34437 Gümüşsuyu +90 212 249 82 82 (ext:21130) İstanbul +90 212 393 50 18 Turkey naltintasi@akenerji.com.tr info@akenerji.com.tr This presentation contains information and analysis on financia
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