Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Investor Presentation (January 2018)
48 slides from Aksa Enerji Uretim A.s's investor presentation, Jan 10, 2018
Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... INVESTOR PRESENTATION 10 JANUARY 2018 P O W E R B E Y O N D B O R D E R S
Slide 2: Key Investment Highlights
KEY 9 operational Largest INVESTMENT Part of a dedicated quoted Independent assets totaling 2,236 MW and energy group Power Producer (IPP) HIGHLIGHTS in Turkey a pipeline of 144 MW Strong exposure Ghana, International to growing Madagascar and Mali expansion enabling African electricity power plants
Slide 3: Part of a Dedicated Energy Group
Part of a Dedicated Energy Group • Leading fully integrated energy player, active in all segments of energy business • Entered energy business in 1950s with the production of generating sets • Focused only on the energy sector since then • Gradually expanded into main segments of electricity & natur
Slide 4: Current Total 1,850 MW Across Turkey and Northern Cyprus
6 assets under operation CURRENT across Turkey and Northern Cyprus TOTAL Bolu-Göynük Çorum - İncesu 15 MW 1,850 MW 270 MW Hydroelectric (1 plant) 15 MW 1% Natural Gas (3 plants) 1,412 MW 76% Fuel-Oil (1 plant) 153 MW 8% Lignite (1 plant) Manisa 270 MW 15% 115 MW Şanlıurfa Antalya 147 MW 1,150 MW Nor
Slide 5: Current Total 386 MW Across Africa
3 assets under operation CURRENT across Africa TOTAL Aksa Energy’s installed capacity in 386 MW Africa will reach 530 MW once second phase investments are completed. Ghana HFO Power Plant became operational at the end of March with 192.5 MW and reached 280 MW at the beginning of August. Mali 40 MW M
Slide 6: Pipeline of 2 International Projects Adding 144 MW
CURRENT TOTAL Pipeline of INSTALLED PIPELINE INSTALLED CAPACITY CAPACITY 2 international projects adding 2.236 MW +144 MW 2.365 MW 144 MW to 15 15 144 270 our portfolio 270 -15 MW The favorable effects of these power plants on our financials have 1.412 1.412 become clearly visible from 3Q2017. Pipel
Slide 7: International Expansion
“INTE RNATIONAL .. “EXPANSION ea r
Slide 8: Aksa Energy in Africa
Aksa Energy in Africa Ghana Madagascar Mali Population 28.5 mn Population 25.5 mn Population 18.6 mn GDP $ 37,54 bn GDP $ 9,7 bn GDP $ 12,7 bn GDP per capita $ 1,697 (real) GDP per capita $ 410 GDP per capita $ 721 Installed Capacity 3,655 MW Installed Capacity 500 MW Installed Capacity 380 MW Energ
Slide 9: Ghana HFO Power Plant 1st Phase Completed
Ghana HFO Power Plant 1st Phase Completed Construction completed in 9.5 months, utilising existing equipment from idle PPs in Turkey, reducing cash CAPEX. KEY POINTS •Over 120,000 m2 power plant area •Land purchased •1,200 containers of equipment •650 employees on site (90% local) •200 employees to
Slide 10: Ghana
Ghana Aksa Energy signed a deal with the Republic TOTAL INSTALLED CAPACITY (MW) of Ghana pertaining to construction of a 4.000 power plant, electricity generation and take-or-pay electricity sales. 3.000 • 6.5 year power purchase agreement (PPA) with Republic of Ghana for installation of a 370 MW HF
Slide 11: Ghana – Fast Track USD Based Cash Generation
Ghana – Fast Track USD Based Cash Generation Operational since March 2017, currently running at 280 MW • Became operational at the end of March with 192.5 MW and increased to 280 MW at the beginning of August • First phase is completed and 6.5 years contract started in August 2017 • Option to go up
Slide 12: Madagascar HFO Power Plant 1st Phase Completed
Madagascar HFO Power Plant 1st Phase – 66 MW Completed *Picture as at July 2017 11
Slide 13: Madagascar
Madagascar 20 year power purchase agreement (PPA) in INSTALLED CAPACITY (MW) the Republic of Madagascar with Jiro Sy Rano 600 Malagasy (Jirama), the state-owned electricity and water services company. • Established a 58.35% subsidiary in the Republic of Mauritius 400 (Aksaf Power Ltd) with a local p
Slide 14: Madagascar Key Points
Madagascar Key Points • Guaranteed sales of 900,000 MWh/year when both phases are operational • 61% of consumption in the country to be provided by Aksa Energy when both phases are operational • Equipment from the existing HFO plants were used, enabling minimal CAPEX and fast track operation • Const
Slide 15: Madagascar Key Points
Madagascar Key Points 34% of consumption in the country to be provided by Aksa Energy on 66 MW. • Cash CAPEX recovered by February 2018 • 2017E production: 0.2 TWh • 2018E production: 0.5 TWh • 2017E EBITDA: USD 17.6 mn • 2018E EBITDA: USD 42 mn (not including the 2nd phase) 13
Slide 16: Mali HFO Power Plant Operational since August 2017
Mali HFO Power Plant Operational since August 2017 *Picture as at Septembery 2017 17
Slide 17: Mali
Mali Emergency power purchase agreement with INSTALLED CAPACITY (MW) Énergie du Mali for the guaranteed sale of 400 the energy generated via Euro based tariff. • 40 MW HFO power plant in the capital of Republic of Mali, Bamako • 3 year contract signed with Énergie du Mali for the 200 380 guaranteed
Slide 18: Mali – Key Points
Mali – Key Points 13% of consumption in the country to be provided by Aksa Energy. • € 4mn mobilisation fee is received • € 1.6mn payment guarantee is received • Became operational at the beginning of August with 10 MW • Full commissioning (40 MW) completed in September • 2017E production: 0.1 TWh •
Slide 19: Turkey & Africa
Turkey & Africa While continuing its investments in Turkey, EBITDA Aksa Energy has moved toward becoming a global brand with the investments it has undertaken in Africa. Turkey Turkey African PPs will be making up 77% of EBITDA in 2017 Mali Ghana Madagascar Africa 19
Slide 20: Potential Opportunities for 2018 and Beyond
Potential Opportunities for 2018 and Beyond Mali Senegal Guinea Burkina Faso Sierra Leone Togo Cameroon Ghana Gabon Indonesia Tanzania Angola Malawi Zambia Namibia Madagascar 26
Slide 21: Asset Sale
a 4 S a ENERGY
Slide 22: 355 MW Asset Sale – USD 411.6 mn
355 MW Asset Sale – USD 411,6 mn The cash proceeds are used for decreasing the COMPLETED TO BE COMPLETED short term liabilities. 81 MW HEPP & 259 MW WPP 15 MW HEPP Kozbükü, Sebenoba, Karakurt, Ayvacık, İncesu Kapıdağ, Belen/Atik, Kıyıköy, Şamlı 2016: $89 mn 2017: $286 mn 2018: $21,6 mn* 2018: $15 mn
Slide 23: 2017 Guidance
2017 GUIDANCE
Slide 24: 2017 Guidance
2017 Guidance Partial contribution of African PPs EBITDA ($) replaces the EBITDA loss from asset sale and shrinking Turkish margins. 180 • REVENUES: TRY 3.1 bn ($861 mn) 120 • CAPEX: TRY 293 mn ($81 mn) • 2017E EBITDA: TRY 500 mn ($140 mn) 157 163 144 140 60 0 2014 2015 2016 2017E 21
Slide 25: 2017 Guidance Improvement in Debt Ratio
2017 Guidance Improvement in Debt Ratio Decrease in YE2017 Net Financial Debt /EBITDA to 7,1 7,2 1.200 5.3x from 8.7x in 1Q2017. 6,2 6,1 6,2 Solid EBITDA growth achieved via 1.000 5,2 5,3 5,2 African PPs along with financial debt reduction via asset sale results in: 4,2 4,2 800 4,0 4,2 • Sharp decli
Slide 26: EBITDA Composition (USD mn)
EBITDA Composition (USD mn) Partial contribution of African PPs replaces the EBITDA loss from asset sale and shrinking Turkish margins. 2016 2017E 144 140 80 18 10 32 2016 TURKEY & N.CYPRUS MALI MADAGASCAR GHANA 2017E 23
Slide 27: Share Performance
Share Performance Aksa Energy trades on AKSA ENERGY (AKSEN TI) Borsa Istanbul (BIST) with Daily Volume Average Price the ticker code AKSEN. (mn TRY) (TRY) 60 4,60 The share trades in: 4,58 4,40 • BIST 100 Index 50 4,1 4,20 • Sustainability Index 4,00 MCAP (10 Jan 2018) 40 3,80 3,60 TRY 2.8 bn / USD
Slide 28: Share Performance: EV/EBITDA Peers
Share Performance 10 January 2018 EV/EBITDA 2013 2014 2015 2016 2017E 2018E AKSEN 14.7 13.3 10.2 10.6 11.2 6.0 AKENR 21 75.1 13.6 22.1 ZOREN 67.1 40.8 29.1 18.3 ODAS 22.9 20.1 28.3 17.6 Sector Average 31.4 37.4 20.3 17.2 25
Slide 29: Financial & Operational Highlights 9M 2017
FINANCIAL & OPERATIONAL HIGHLIGHTS 9M 2017
Slide 30: 9M 2017 Results Snap Shot
9M 2017 Results Snap Shot 1Q 2017 2Q 2017 3Q 2017 QoQ Change 9M 2016 9M 2017 YoY Change Installed Capacity (MW)* 2,104 MW 2,211 MW 2,377 MW 166 MW 2,279 MW 2,377 MW 98 MW Sales Volume (GWh)** 4,676 3,764 4,204 12% 12,774 12,644 -1% Net Sales (TRY mn) 738 875 952 9% 2,212 2,565 16% Gross Profit (TRY
Slide 31: 9M 2017 Results Sales Breakdown (excl. Africa)
9M 2017 Results Sales Breakdown (excl. Africa) 1Q 2017 2Q 2017 3Q 2017 9M 2016 9M 2017 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern Cyprus 179,631 378 175,906 388 176,615 380 529,868 238 532,153 382 Renewable Market 192,332 266 112,655 272 116,784 263 601,511 223 421,771 267
Slide 32: Financial Highlights 9M 2017 Consolidated Income Statement
Financial Highlights 9M 2017 Consolidated Income Statement NET SALES & EBITDA (TRY MN) EBITDA Margin 2.565 EBITDA Margin 3Q16: 13.2% 2.212 9M16: 15.4% 3Q17: 18.3% 9M17: 12.9% 910 952 340 332 120 174 Net Sales EBITDA Net Sales EBITDA 3Q16 3Q17 9M16 9M2017 OPERATING INCOME & NET INCOME (TRY MN) 196 16
Slide 33: Net Financial Debt & Repayment Schedule
Financial Highlights 9M 2017 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TL MN) 3.500 86% 90% 89% 100% 88% 3.000 76% 90% 3.299 3.086 3.096 2.984 80% 2.500 62% 2.742 70% 2.000 60% 50% 1.500 1.781 40% 1.000 30% 20% 500 10% - 0% 2014 2015 2016 1Q 2017 2Q 2017 3Q 2017 5.2 6.2 7.1 8.7 8.3
Slide 34: Consolidated Income Statement
Consolidated Income Statement (TRY mn) 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/03/2017 30/06/2017 30/09/2017 Net sales 911.9 1,315.4 1,840.6 1,786.0 1,957.4 2,306.7 3,178.2 738.4 1,613 2,565.4 Cost of sales -775.5 -1,088 -1,604 -1,565,9 -1,710.8 -1,979.5 -2,90
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (TRY mn) 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/03/2017 30/03/2017 30/09/2017 Cash and cash equivalents 78.3 110.1 40.6 22.3 34.2 48.5 219.4 6 199.5 4.5 Trade receivables net 113 261.5 245.9 142.3 88.7 119.8 219.7 262.9 337.5
Slide 36: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (TRY mn) 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/03/2017 30/06/2017 30/09/2017 Net income (loss) before tax 69.4 -122 226.5 -156.1 26.6 -221.1 -367.6 -88.4 -85 19.8 Depreciation and amortisation 71.7 92.5 105.3 111.8 121.5 1
Slide 37: Turkish Market
TURKISH MARKET
Slide 38: The Largest Quoted IPP in Turkey
MARKET HIGHLIGHTS The Largest Quoted IPP in Turkey IPPS BY INSTALLED CAPACITY Publicly listed companies 3.604 2.940 2.790 2.236 2.055 1.666 1.224 1.090 392 364 Enerjisa Limak Eren Energy Aksa Energy Cengiz Energy İÇDAŞ Ak Energy Zorlu Energy Ayen Energy AES Entek SHARE OF AKSA ENERGY SHARE OF AKSA E
Slide 39: Turkey – Key Figures
MARKET HIGHLIGHTS Turkey – Key Figures INSTALLED CAPACITY 2003 GENERATION 2003 16% 2% 24% EUAS 55% EUAS BOT, TOR,BOO BOT, TOR,BOO IPPs 45% IPPs 8% Auto Producers Auto Producers 13% 37% INSTALLED CAPACITY 2017 GENERATION 2017 62% EUAS 16% EUAS BOO, BOT, TOR 66% BOT, TOR,BOO IPPs 11% IPPs Others 18% 2
Slide 40: 2017YE – Key Figures
MARKET HIGHLIGHTS Total installed capacity in Turkey has reached 83,275 MW in 2017YE, 2017YE – Key Figures an increase of 4,611 MW YoY. INSTALLED CAPACITY (2017) GENERATION BY FUEL TYPE Fuel-Oil; 1 Other; 3 Other; 4 Fuel-Oil; 1 Wind; 8 Wind; 6 Hydro; 33 Natural Gas; 38 Hydro; 20 Lignite&Coal; 21 Lig
Slide 41: 2017 YE – Installed Capacity Changes
MARKET HIGHLIGHTS 2017 YE – Installed Capacity Changes 2016-2017 CAPACITY CHANGES When new and 2.500,00 decommissioned capacities are Fossil Renewable netted off, there is an increase 2.000,00 1.929 of 1.081 MW in wind, 697 MW in hydro, 630 MW in 1.500,00 coal&lignite, 348 MW in natural 1.081 1.000,
Slide 42: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption Electricity generation increased by 8% and consumption by 5% YoY in 2017. GENERATION (GWh) CONSUMPTION (GWh) 290.546 275.154 289.975 270.194 2016 2017 2016 2017 36
Slide 43: Prices
MARKET HIGHLIGHTS Prices 200 Weighted average spot price was 168 TRY in 180 2017 YE, 15% higher than 2016 YE (146,4 TRY) 160 due to: 140 • 2016 setting a very low base (mild 120 weather & very strong renewable 100 production) 80 • Natural gas consumption limitations brought upon generation facilitie
Slide 44: Appendix
APPENDIX
Slide 45: Licence Portfolio
Licence Portfolio Power Plant License Owner Fuel Type Installed Capacity (MW) % Northern Cyprus Aksa Cyprus Fuel-oil 153 Ghana Aksa Energy Fuel-oil 280 Mali Aksa Energy Fuel-oil 40 Madagascar Aksa Energy Fuel-oil 66 Total Fuel-Oil Fired Power Plants 539 24% Antalya NGCC Aksa Energy Natural Gas 1.15
Slide 46: Ongoing Investments
Ongoing Investments Power Plant Investment License Owner Fuel Type Capacity (MW) Completion Year Ghana Greenfield Aksa-Ghana HFO 90 2018 Madagascar Greenfield Aksaf Power HFO 54 2018-2019 Total 144 The above projects are utilising mostly existing equipments from Şırnak, Hakkari, Mardin 1, Mardin 2,
Slide 47: 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
Slide 48: Disclaimer
Disclamier Aksa Energy 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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