Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz — Investor Presentation (June 2018)
42 slides from Aygaz Anonim Sirketi's investor presentation, Jun 22, 2018
Slide 1: Investor Presentation June 2018
INVESTOR PRESENTATION June 2018
Slide 2: Content
CONTENT A- Overview G- Other participations B- World LPG market H- Financial highlights C- Turkish LPG market & Aygaz I- Appendix D- The LPG value chain J- Glossary E- Participation portfolio K- Disclaimer F- Natural gas L- Contacts
Slide 3: Aygaz overview
3 A Aygaz overview 2017 8.5 billion REVENUE 2.2 m tons SALES OF LPG LEADING 28% LPG MARKET SHARE LPG DISTRIBUTOR of TURKEY NATURAL GAS REFINERY DIVERSIFIED PARTICIPATION PORTFOLIO IN ENERGY POWER GENERATION
Slide 4: Overview
4 > Overview SUMMARY FINANCIALS (Cons. in m TL) 2017 2016 2015 2017-2016 Change Revenue 8,469 6,749 6,420 25% EBITDA 352 394 337 -11% Net Profit 577 416 418 39% EBITDA Margin 4% 6% 5% -2 Net Profit Margin 7% 6% 7% +1 Volume (000 tons) 2,154 2,109 2,057 2% SHAREHOLDERS (%) As of 31/03/2018 PUBLICLY T
Slide 5: Core business - LPG distribution
5 > Core business - LPG distribution Generic brand for LPG 11th largest industrial company of Turkey, as of 2017 Most preferred LPG brand in Turkey since its foundation Market leader with 3 brands MARKET SHARES (%) AYGAZ VOLUMES (000 tons) 31 42 72 46 37 707 865 933 1,029 41 24 589 777 792 759 662 6
Slide 6: World LPG market
6 B World LPG market WORLD LPG CONSUMPTION (m tons) 2016 298 2015 285 Fastest - growing energy source after 2014 275 268 renewable energy 2013 2012 257 300 billion USD business size worldwide 2011 256 2010 249 Sources of LPG production; 2009 240 2008 240 62% 38% 2007 236 NATURAL GAS CRUDE OIL 2006 2
Slide 7: World LPG consumption
7 > World LPG consumption World LPG Consumption World LPG Consumption By Sectors 2016 (%) By Regions 2016 (%) 44 41 Domestic Asia Pasific 1 28 4 17 Agriculture Chemical Africa North America 10 17 8 10 S.&C. America Europe&Eurasia Refinery Industry 9 11 Autogas Middle East WLPGA Statistical Review of
Slide 8: Prices of LPG and Brent
8 > Prices of LPG and brent 140 1.200 113 1.100 120 108 1.000 100 900 977 800 894 $/Barrel 76 $/Ton 80 700 64 600 60 56 500 48 32 539 537 40 400 368 421 300 321 20 200 JAN 13 APR 13 JUL 13 OCT 13 JAN 14 APR 14 JUL 14 OCT 14 JAN 15 APR 15 JUL 15 OCT 15 JAN 16 APR 16 JUL 16 OCT 16 JAN 17 APR 17 JUL 17
Slide 9: Turkish LPG market
9 C Turkish LPG market LPG consumption in Europe (m ton) 4.1 m tons #2 in Europe #11* in the World RUSSIA 4.7 ~90 distribution companies TURKEY 4.1 Leading 3 players in the cylinder market and first 8 players in the autogas market hold over 80% of the total market ITALY 3.2 Serving; • 7.5 m houses •
Slide 10: LPG market ranking
10 > LPG market ranking 1- ITALY 1.3 m tons 2- SPAIN 1.2 m tons 3- RUSSIA 1.1 m tons 4- FRANCE 1.0 m tons 5- TURKEY 0.8 m tons THE 5th BIGGEST DOMESTIC LPG MARKET IN EUROPE 1- SOUTH KOREA 3.5 m tons 2- TURKEY 3.1 m tons 3- RUSSIA 3.0 m tons 4- POLAND 1.8 m tons 5- ITALY 1.7 m tons THE 2nd BIGGEST AU
Slide 11: Slide 11
Slide 12: Cylinder market starting to stabilize
12 > Cylinder market starting to stabilize CYLINDER MARKET RATES OF CHANGE (YoY) Turkish 4% market 842 816 821 801 812 2% 0 (000 tons) -2% 2013 2014 2015 2016 2017 -4% -6% Aygaz 359 342 343 342 335 -8% -10% 2013 2014 2015 2016 2017 TURKISH MARKET AYGAZ Growth in 2015 and 2016 in the cylinder market
Slide 13: Aygaz; leader in cylinder market since its foundation
13 > Aygaz; leader in cylinder market since its foundation CYLINDER MARKET SHARES Generic brand Market maker AYGAZ 41.3% Largest dealer network with high SHV 28.9% sales efficiency DEMİRÖREN 15.9% 60% market share in residential use Fully integrated production cycle; Cylinder OTHER 13.9% and gas app
Slide 14: Slide 14
Slide 15: World's second biggest autogas market
15 > World’s second biggest autogas market RATES OF CHANGE (YoY) 14% AUTOGAS MARKET 12% 10% 3,142 3,117 3,069 8% Turkish 2,727 2,838 6% market 4% (000 tons) 2% 792 0 777 759 Aygaz 662 688 -2% -4% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 TURKISH MARKET AYGAZ Autogas market that showed a stea
Slide 16: Price economy of autogas
16 > Price economy of autogas %50 %40 %30 %20 %10 0 -%10 -%20 -%30 -%40 price advantage to gasoline JAN-13 MAR-13 MAY-13 JUL-13 SEP-13 NOV-13 JAN-14 MAR-14 MAY-14 JUL-14 SEP-14 NOV-14 JAN-15 MAR-15 MAY-15 JUL-15 SEP-15 NOV-15 JAN-16 MAR-16 MAY-16 JUL-16 SEP-16 NOV-16 JAN-17 MAR-17 MAY-17 JUL-17 SEP-
Slide 17: Autogas; most widely-used passenger car fuel of Turkey
17 > Autogas; most widely-used passenger car fuel of Turkey RATIO OF CARS REGISTERED TO TURKISH CAR PARK (m cars) TRAFFIC ACC. TO FUEL TYPE 4.4 4.6 4.1 4.3 3.9 3.8 4.3 35% 3.3 75% 3.1 3.1 5% 2.9 2.9 2.9 39% 2.9 15% 2.5 26% 2013 2014 2015 2016 2017 2004* 2017 GASOLINE DIESEL AUTOGAS GASOLINE DIESEL A
Slide 18: Aygaz; leader of the second biggest autogas market in the world
18 > Aygaz; leader of the second biggest autogas market in the world AUTOGAS MARKET SHARES MARKET SHARE & STATION NUMBER SHARE (%) 24,4 MARKET SHARE AYGAZ 24.4% STATION NUMBER SHARE OMV PO 12.3% 16 SHELL 11.8% 12 12,3 11,8 10,5 10 9 DEMİRÖREN GROUP* 10.5% 8 7,1 5 7,2 BP 7.2% 4 4,2 4 2,9 SHV GROUP**
Slide 19: Autogas car park growth
19 > Autogas car park growth 1,000+ conversion points 177,000 OEM; original equipment $500 average cost of conversion manufacturer conversions Payback in 15,000 km • Some major car manufacturers per year are providing guaranteed conversion currently AUTOGAS CONVERSIONS (m cars) 12 9.9 10.6 11.3 9.3
Slide 20: The LPG value chain
20 D The LPG value ~230 1,710 auto gas stations tankers chain 1,000,000 vehicles using Aygaz Otogaz Fixed storage Moving&floating capacity of storage capacity 178,400 m3 via AUTOGAS of 37,000 m3 20 facilities 3,000+ BULK bulk gas customers 3 LPG ships CYLINDER belonging to 2.2 million the fleet of t
Slide 21: Competitive Supply Chain
21 > Competitive Supply Chain BIG PLAYER ADVANCED MODEL #1 purchaser in Mediterranean Direct imports to 5 different locations #1 importer in Turkey Most diversified supply portfolio in Turkey Diversified supplier & origins #1 FOB player in Black Sea Diversified supply pattern (ex-refinery, FOB, CIF)
Slide 22: Slide 22
Slide 23: Participation Portfolio
23 E Participation Portfolio Aygaz Doğalgaz Anadoluhisarı 100% 100% EYAŞ* Akpa 20% 100% Entek Opet-Aygaz 50% Gayrimenkul 50% *EYAŞ owns 51% of the shares of TÜPRAŞ Financial Investments: Koç Finansal Hizmetler A.Ş. (1.97%), Ram Dış Ticaret A.Ş (2.5%), Tanı Pazarlama ve İletişim Hizmetleri A.Ş. (10%)
Slide 24: Natural gas
24 F Natural gas LNG SALES 2017 Transportation 16% market share, sales: and regasification 300 industrial ~100 mcm customers SALES VOLUME (mcm) PIPELINE NATURAL GAS SALES 1,279 1,103 Started in 2017 sales: 961 2010 ~1,300 mcm 837 366 PROJECTS LNG & Pipeline gas import 125 94 92 100 105 2013 2014 201
Slide 25: Other participations
25 G Other participations POWER GENERATION SALES AND MARKETING Direct sale of cylinder gas and carboy TOTAL INSTALLED CAPACITY: 244 MW water throughout Turkey İzmit Natural Gas Fuel trade at its fuel stations Combined Cycle (NGCC): 157 MW 6 Hydro Assets: (HEPP): 87 MW Menzelet and Kılavuzlu HEPP’s (
Slide 26: Aygaz key takeaways
26 > Aygaz key takeaways Consistent Brand Long-term Diversifier & Market Power Strategy Portfolio Leader Builder Investor Strong Sales & Financial Logistics Network Strength STRATEGIC PRIORITIES Sustain its market leadership in LPG by; • Investing in the future with the responsibility of being the i
Slide 27: Shareholder value
27 > Shareholder value BIST Code AYGAZ STRENGTHS Bloomberg Code AYGAZ.TI Sustainable operating profitability from core business; LPG Resistant to economic fluctuations and crises Reuters Code AYGAZ.IS Regular dividend payments IPO Date 13.01.1988 Corporate governance practices at international stand
Slide 28: Financial highlights
28 H Financial highlights REVENUE (m TL) 8,469 7,061 6,420 6,749 6,005 2013 2014 2015 2016 2017 Revenue figure fluctuations are mainly due to; • FX rate changes • Commodity price changes
Slide 29: Financial highlights
29 > Financial highlights GROSS PROFIT AND GPM EBITDA AND EBITDA MARGIN 12% 11% 10% 9% 6% 7% 5% 4% 4% 787 3% 677 741 337 394 571 527 252 352 188 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 GROSS PROFIT GROSS PROFIT MARGIN EBITDA EBITDA MARGIN NET PROFIT AND NPM PROFIT MARGINS 7% 12% 7% 6% 10%
Slide 30: Financial highlights
30 > Financial highlights NET CASH (m TL) WORKING CAPITAL (m TL) 324 276 186 183 267 110 182 297 187 577 230 367 390 483 475 -65 -63 -319 -372 -376 2013 -204 2016 -471 -263 -670 -380 2013 2014 2015 2014 2016 2015 2017 2017 TRADE PAYABLES TRADE RECEIVABLES INVENTORY WORKING CAPITAL CURRENT RATIO RETU
Slide 31: Financial highlights
31 > Financial highlights DEBT PROFILE AS OF 31/03/2018 (m TL) 2017 3M 2018 TL ST Borrowings 85 15 TL Bond; Current portion of LT Borrowings 305 293 Loan; 22% LT Borrowings 583 691 59% Total Debt 973 999 *FX Loan; Cash and cash equivalents (-) 593 497 19% = Net Debt 380 502 * FX position is actively
Slide 32: Appendix
32 I Appendix
Slide 33: Income statement summary
33 1 Income statement summary (m TL) 2013 2014 2015 2016 2017 Revenue 6,005 7,061 6,420 6,749 8,469 COGS (5,434) (6,534) (5,743) (5,962) (7,728) Gross Profit 571 527 677 787 741 Operating Profit 170 104 250 308 265 Profit Before Tax 237 237 458 469 621 Net Profit 205 218 418 416 577 EBITDA 252 188 3
Slide 34: Balance sheet summary
34 2 Balance sheet summary (m TL) 2013 2014 2015 2016 2017 Cash & Cash Eq. 173 161 289 568 593 Trade Receivables 367 390 483 475 577 Inventories 276 110 186 183 324 Participations 1,377 1,677 1,867 1,922 2,273 Prop. Plant & Eq. 589 585 651 658 678 Financial Debt (238) (365) (551) (630) (973) Trade P
Slide 35: 2018 Q1 income statement summary
35 3 2018 Q1 income statement summary (m TL) Q118 Q417 Change Q118 Q117 Change Revenue 2,063 2,307 -11% 2,063 2,065 - Gross Profit 133 185 -28% 133 189 -30% Operating Profit 23 46 -51% 23 86 -74% Profit Before Tax 60 97 -39% 60 170 -65% Net Profit 55 85 -35% 55 157 -65% EBITDA 45 68 -34% 45 107 -58%
Slide 36: 2018 Q1 Aygaz LPG sales
36 4 2018 Q1 Aygaz LPG sales 594 527 520 514 489 268 (000 tons) 222 274 261 236 BULK OTHER 166 204 221 168 166 AUTOGAS 8 8 11 8 12 79 86 93 77 74 CYLINDER Q1 Q2 Q3 Q4 Q1 2017 2018 Q1 sales volumes were realized as; • 166 thousand tons in Autogas (no change YoY) • 74 thousand tons in Cylinder Gas (-6
Slide 37: 2017 sales volumes
37 5 2017 sales volumes Domestic LPG sales 1,125 Thousand tons -3% YoY International and wholesale LPG sales 1,029 Thousand tons +9 % YoY Total LPG sales 2,154 Thousand tons +2% YoY • Cylinder sales are 335 thousand tons (-2% YoY) • Autogas sales are 759 thousand tons (-4% YoY)
Slide 38: Market shares
38 6 Market shares CYLINDER AUTOGAS 41% According to EMRA 2017 report, Aygaz cylinder and autogas market shares are 42% 24% 41% and 24% respectively. 25% (42% and 25% in 2016) 2017 2016 According to EMRA report, Turkish 812,208 cylinder sales volume is 812,208 tons 819,912 -1% and autogas volume is
Slide 39: Forward looking statements for 2018
39 7 Forward looking statements for 2018 • Cylinder: 320-335 thousand tons SALES VOLUME • Autogas: 750-785 thousand tons • Cylinder: 41.5%-43.5% MARKET SHARE • Autogas: 23.2%-24.5% (Previous: %24.2 - %25.4)* *According to EMRA’s monthly reports, since the market growth is above expectations for the
Slide 40: Glossary
40 J Glossary LPG Liquid Petroleum Gas EMRA Energy Market Regulatory Authority WLPGA World LPG Association SP Sonatrach Price PETDER Petroleum Industry Association FOB Free On Board CIF Cost, Insurance & Freight Med Mediterranean VLGC Very Large Gas Carrier EYAŞ Enerji Yatırımları A.Ş. LNG Liquid Na
Slide 41: Disclaimer
41 K Disclaimer This presentation may contain 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 statements are reasonable, they may be affected by a variety of variabl
Slide 42: Contacts
42 L Contacts investor@aygaz.com.tr ferda.erginoglu@aygaz.com.tr Ferda Erginoğlu, CFO +90 212 354 1764 sebnem.yucel@aygaz.com.tr Şebnem Yücel, Finance Manager +90 212 354 1510 selin.sanver@aygaz.com.tr Selin Sanver, Investor Relations Manager +90 212 354 1659 www.aygaz.com.tr