Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz — Investor Presentation (November 2015)
21 slides from Aygaz Anonim Sirketi's investor presentation, November 2015
Slide 1: AYGAZ Investor Presentation
AYGAZ Investor Presentation November 2015
Slide 2: Who we are? - AYGAZ
Who we are? - AYGAZ Leading LPG distributor of Turkey •1.8 m tons sales – 2014 •$3.2 b revenue – 2014 Diversified participation portfolio in energy; •29% market share • Natural Gas • Refinery • Power Generation Summary financials; (Cons. in mTL) 2014 2013 2012 YoY change Revenue 7,061 6,005 5,586 18
Slide 3: Where we stand? – market leader
Where we stand? – market leader • Generic brand for LPG • #1 in Turkey, #5 in Europe • Leader since foundation • Over 50 years Aygaz Group 43% Market shares* 25% Cylinder LPG 29% Autogas All segments * As of August 2015 2
Slide 4: What we do?
What we do? The LPG value chain Supplying 1.7 million tons of LPG Fixed storage Moving storage capacity capacity of 4 LPG ships belonging to the fleet of of 56,000 m3, which 1,631 176,000 m3 via Anadoluhisarı Tankercilik covers 55% of Turkey auto gas 23 facilities stations 1,000,000+ vehicles using
Slide 5: What is the product? - LPG
What is the product? - LPG •Mixtures of hydrocarbons in which butane or propane are predominant • LPG market is supply oriented Why LPG? Anytime+Anywhere • Supply is secure as LPG is extracted from related natural gas facilities or as refinery gases Portable and versatile Abundant reserves-price
Slide 6: Facts about Turkish LPG market
Facts about Turkish LPG market Evolving from cylinder to auto 76% 38% 1,387 2,838 1,803 570 801 85 22% 16% 46% 2% 2004 2014 4.3 EMRA LPG Sector Reports 2004, 2013 3.7 3.5 •3.7 m tons, #2 in Europe, #14 in the World 2.1 1.7 1.8 •75 distribution companies 1.5 1 •Serving; 7.5 m houses 0.4 4 m cars •Lib
Slide 7: Where is the growth? - autogas
Where is the growth? - autogas 3,0 TR Autogas Volumes Third 2,5 biggest autogas 2,0 (m ton) market in the world 1,5 2.8 m tons 1,0 42% of the 0,5 passenger car 0,0 park in Turkey 4 m cars TLPG Assocition Report, EMRA Price Advantage of Auto Gas to Gasoline to Diesel 50% 40% 30% 30%+ price 20% advant
Slide 8: Is the autogas growth sustainable? -Yes
Is the autogas growth sustainable? -Yes 9,9 9,3 8,6 8,1 7,5 7,1 3,9 4,1 250,000 3,3 3,7 2,6 3,0 conversions per year Passenger car park Autogas car park 1,000+ conversion points Source: Aygaz / Tofaş $500 average cost CNG versus LPG comparison Pay back in 15,000 • initial investment (x10 times
Slide 9: How do we lead autogas market?
How do we lead autogas market? 24% 25% Market share vs number of stations share Long-term 20% 16% 15% 14% strategy Aygaz&Opet 15% 10% 11% 7% 12% 8% 9% 6% 6% builder synergy 5% 4% 4% 4% 4% 3% 0% Opet partnership leads autogas market Market share Number station share * 2014 PETDER and EMRA data Core b
Slide 10: Is the cylinder market here to stay? - Yes
Is the cylinder market here to stay? - Yes 2.000 1.500 Growth signals for the first time after 15 (000) tons 1.000 1.803 1.733 years of contraction in 1.492 1.302 1.177 1.134 1.044 979 the 1st&2nd quarters of 500 890 - 842 801 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TLPG Associti
Slide 11: Aygaz Key Takeaways
Aygaz Key Takeaways Financial Strength Brand Power Long- term Strategy Builder Consistent Market Diversifier & Leader Portfolio Investor Strong Sales & Logistics Network 10
Slide 12: Shareholding & Portfolio Structure
Shareholding & Portfolio Structure Shareholders Participations Koç Group – 51% Akpa - 100% Anadoluhisarı - 100% Liquid Petroleum Aygaz Natural Gas-99% Gas Development AYGAZ Co. – 25% OAG - 50% Entek - 50%* Publicly traded - 24% Tüpraş – 10% *As of December 18, 2014, Aygaz purchased AES Entek shares
Slide 13: Natural gas
Natural gas LNG Distribution • Transportation and regasification • 350 industrial customers, 20% market share • 2014 sales : ~120 mcm • Total natural gas market: 46 bcm; LNG market: 0.7 bcm Pipeline Natural Gas • Started in 2010 with 68 mcm sales • 2014 sales : ~1 bcm Strategies • LNG import • Pipel
Slide 14: What is our natural gas strategy?
What is our natural gas strategy? 13
Slide 15: Turkey’s Natural Gas Supply-Demand
Turkey’s Natural Gas Supply-Demand bcm 2017: Contract: 48 bcm 2013: Demand: 54bcm Contract: 52 bcm Demand: 46 bcm Necessity for new gas Russia to be renewed contracts Azerbaijan Russia Blue Stream Iran Nigeria Russia Algeria Russia2 Source: Aygaz & market data • Turkey’s additional natural gas requi
Slide 16: Strategy - Power generation
Power generation Total Capacity – 364 MW İzmit NGCC : 160 MW Bursa NGCC : 142 MW 3 Hydro assets : 62 MW Kepezkaya HEPP (Karaman) 28 MW Damlapınar HEPP (Karaman) 16 MW Kumköy HEPP (Samsun) 18 MW Project Strategy AYAS IMPORTED COAL Selective growth depending on opportunities and 625 MW Coal Power Plan
Slide 17: What are our priorities?
What are our priorities? Sustain LPG market leadership through • Product differentiation and innovation for autogas • Further penetration through new autogas stations • Growth prospects for cylinder in rural Turkey • Geographical diversification in neighbouring countries Utilize and expand existing
Slide 18: How do we create shareholder value?
How do we create shareholder value? Sustainable Management operating profitability from strategies core business ; LPG Resistant that focus on increasing to economic shareholder value fluctuation and crises AYGAZ Mcap (mTL) BIST-30 indexed (mTL) 3500 High 3000 dividend Corporate 2500 payments 2000 g
Slide 19: Financial Highlights
Financial Highlights Net sales Gross Profit and GPM 600 12% 571 2014 7.061 11% 9% 10% 550 527 521 2013 6.005 501 9% 10% 7% 8% 500 478 6% 2012 5.586 4% 2011 450 5.456 2% 2010 4.658 400 0% 2010 2011 2012 2013 2014 EBITDA and EBITDA Margin Net Profit and NPM 500 456 10% 400 380 8% 8% 7% 305 400 320 8%
Slide 20: Contacts
Contacts investor@aygaz.com.tr Ferda Erginoğlu, CFO E-mail: ferda.erginoglu@aygaz.com.tr Phone: +90 212 354 1733 Şebnem Yücel, Finance Manager E-mail: sebnem.yucel@aygaz.com.tr Phone: +90 212 354 1510 Selin Sanver, Investor Relations Manager E-mail: selin.sanver@aygaz.com.tr Phone: +90 212 354 1659
Slide 21: Disclaimer
Disclaimer This presentation 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 statements are reasonable, they may be affected by a variety of variables and c