Slide 1: Aygaz Investor Presentation August 2023
Aygaz Investor Presentation August - 2023 1 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 2: Agenda
AGENDA Company Profile (slide #3-4) 1 Aygaz Strategies (S) (slide #5) 2 S1 - Turkish LPG Market and Business (slide #6-15) 3 S2 - Being an International LPG Player (slide #16-18) 4 S3 - Strategic Business Areas (slide #19-23) 6 S4 – Sustainability & ESG Topics (slide #24-30) 7 Financial Highlights (
Slide 3: Aygaz at a Glance
Aygaz at a Glance Core Business LPG International Operations Shareholding Structure Founded in 1961 United Aygaz - Bangladesh Koç Group’s first company Procurement, 51.2 % Koç Group in energy sector LPG sourcing, storage, filling storage, filling and and distribution in distribution of LPG Banglades
Slide 4: Aygaz in Figures
Aygaz in Figures Key Operating Figures of 2022 Facilities in Turkey The largest LPG storage Aygaz total LPG sales Aygaz Doğal Gaz total LNG 5 Filling plants*** in Turkey volume & PNG sales volume 178 thousand m3 2.4 million tons 95 mcm 7 Distribution centers Cylinder gas sales Cylinder gas dealers P
Slide 5: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz creating environmental solutions platform and home- while preparing culture, techno
Slide 6: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business With a focus on sustainability; creating environmental solutions while Carrying the talent and preparing culture, technology and power of the Aygaz talent for
Slide 7: Turkish LPG Market
Turkish LPG Market LPG as a commodity Turkish LPG Market Ranking → Mixture of hydrocarbons (butane and propane) # 4 in European domestic LPG # 2 in Global autogas market market → Portable and versatile Italy 1.4 Russia 3.3 → Low GHG emission, eco-friendly Spain 1.0 Turkey 3.1 France 1.0 South Korea
Slide 8: Aygaz's Core Business
Aygaz’s Core Business Highlights → Leader; → Generic brand for LPG ✓ LPG distributor of Turkey → Most preferred LPG brand in Turkey since its foundation ✓ Of the 2nd biggest autogas market in the World → Market leader with 2 brands ✓ Of the 4th biggest domestic LPG market in Europe LPG Sales Volume
Slide 9: Cylinder Gas Market
Cylinder Gas Market Cylinder Gas Market (k ton) Cylinder Gas Market Shares Turkish Cylinder Market Aygaz Sales 750 729 718 699 612 41.2% 315 302 297 287 30.0% 252 18.1% 10.7% Aygaz İpragaz Oyak Group Other 2018 2019 2020 2021 2022 General factors affecting Turkish cylinder market Aygaz leading cylin
Slide 10: Autogas Market
Autogas Market Autogas Market (k ton) Market Shares & Station Number Shares Turkish Autogas Market Aygaz Sales 22.5% Market Share Station Number Share 3,283 3,354 3,117 3,098 16.8% 3,065 14.8% 14.1% 13.4% 8.8% 8.7% 8.6% 8.5% 7.0% 5.7% 5.3% 5.2% 4.5% 3.2% 2.2% 730 734 664 669 697 Aygaz PO Shell Oyak
Slide 11: Autogas; 2nd most widely used passenger car fuel of Turkey
Autogas; 2nd most widely used passenger car fuel of Turkey Ratio of cars registered to traffic acc. to fuel type Turkish Car Park (M cars) Gasoline Diesel Autogas Electric- Hybrid Diesel Autogas Gasoline Electric- Hybrid Turkstat Data 13.7 14.2 0% 1% 13 12.4 12.5 0.1 0.1 27% 3.8 34% 3.2 3.5 35% 3.1
Slide 12: Other LPG Sales
Other LPG Sales Other LPG Sales Volume (k ton) Bulk LPG sales Bulkgas Wholesale International* Total ✓ used for heating, hot water, and cooking needs at home and for production in 1,410 commercial and industrial enterprises 1,289 ✓ accounts for 4% of Aygaz’s domestic retail sales. 1,190 1,031 Wholes
Slide 13: Competitive Supply Chain
Competitive Supply Chain BIG PLAYER IN LPG ADVANCED MODEL ✓ #1 LPG importer and exporter in Turkey ✓ Direct imports to 5 different terminals ✓ 50% of LPG imports ✓ Most diversified supply portfolio in Turkey ✓ 45 % of LPG exports ▪ Diversified supplier & origins ✓ #1 storage owner in Turkey (~24% of
Slide 14: Shipping Business
Shipping Business → Profitable operation adding value to supply chain processes through its fully utilized three owned fleet. → Aygaz is actively involved in maritime transportation of LPG, which first started in 1967. → In 2010, Aygaz assigned the management of its LPG carriers to its subsidiary An
Slide 15: Gebze Facility
Gebze Facility Exports (mn USD) Export Regions– 2022 Cylinder and Gas Appliances Production & Sales ✓ USD revenue generation through pressurized container and equipment exports. 35 ✓ Makes Aygaz a fully integrated LPG company producing its own cylinders 8% and gas appliances. 17% ✓ Embraces Aygaz R&
Slide 16: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz platform creating environmental solutions while and home-delivery preparing culture
Slide 17: Bangladesh LPG Market
Bangladesh LPG Market LPG Consumption (k ton) 2016-2021 CAGR: %32 1,395 1,232 960 764 518 343 2016 2017 2018 2019 2020 2021 WLPGA → Bangladesh GDP growth rate reached 7% in 2021 doubling previous year’s figure and it is one of the most densely populated countries in the world with 166 million curren
Slide 18: Bangladesh Investment: United Aygaz
Bangladesh Investment: United Aygaz Cumulative Capital Contribution: 49 million USD Aygaz Share: ~24.5 million USD 49 M USD Total 159 capital employees Bangladesh LPG market, which In addition to the 2 LPG sphere tanks grew by 13% in 2021 and in use with a total capacity of 6,000 reached 1.4 million
Slide 19: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz creating environmental solutions while platform and home- preparing culture, techno
Slide 20: Parcel Delivery Business
Parcel Delivery Business Operations → Turkish e-commerce sector that grew by 39% in 2019 is up by 66% YoY in 2020 with the impacts of the pandemic. It is further up by 69% YoY in 2021 and the e-commerce volume reached TL 382 billion. Thanks to Aygaz dealers → Cargo distribution business, which conti
Slide 21: Sendeo Dağıtım Hizmetleri A.Ş.
Sendeo Dağıtım Hizmetleri A.Ş. 108,000 maximum daily package delivery is reached in June. As of the beginning of 2023, the total number of delivered 1,183.5 M* TL Total 1,859 packages is 10.8 million. capital employees with contribution 1,542 in the field Sendeo operates with 10 transfer centers, 13
Slide 22: Aygaz Doğal Gaz
Aygaz Doğal Gaz Sales Volume (mcm) Turkish Natural Gas Market LNG Pipeline Natural Gas 827 694 475 246 17 77 79 73 82 78 2018 2019 2020 2021 2022 Source: EMRA → Achieved over TL 1.5 billion in revenues in 2022 through piped and LNG Sales PNG Sales liquified natural gas (LNG) sales. Transportation an
Slide 23: Pürsu
Pürsu → Aiming to widen the scope of Aygaz’s water business carried out through its dealers and to achieve sustainable production, shares of Bal Kaynak Su İthalat İhracat Sanayi ve Ticaret A.Ş. was acquired in 2019, which held all necessary permits and licenses, along with the filling plant, where t
Slide 24: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz creating environmental solutions while platform and home- preparing culture, techno
Slide 25: Sustainability Efforts
Sustainability Efforts Member of Koç Group who has committed to be Carbon Policies adopted to further improve the Company’s Neutral by 2050 in line with the European Green Deal. compliance risk management and to comply with corporate governance and sustainability principals. LPG is a cleaner product
Slide 26: R&D Center
R&D Center → The objectives of Aygaz R&D Center include developing new products powered by LPG, enhancing LPG product quality, achieving digitalization with smart products, improving efficiency through automation systems, and contributing more to the consumers, national economy and the environment.
Slide 27: Digitilization Efforts
Digitilization Efforts AES Dealers’ AES Dealers’ AES ASG Mobile Aygaz Mobile Mogaz Mobile Aygaz e-Store Mobile Web Application Application Application Web Application Control center of AES's integrative The connection Our digital face that An application with The main structure ordering processes to
Slide 28: Work Culture in Aygaz
Work Culture in Aygaz Agile and Productive Organization • Aygaz Competence Model • Integrated and digital processes • New generation work methods Employee Experience • Work climate that supports Gaining Qualified cooperation, agile working that Supports Loyalty Human Resource and open communication
Slide 29: Risk Policy
Risk Policy FX & Interest Rate Risk • Zero FX exposure target after natural hedges • Portfolio with fixed/variable interest rates • Proactive management of FX and interest rate with derivatives Leverage & Liquidity Risk • Limits for financial ratios and active liquidity risk management: ✓ Net Financ
Slide 30: Corporate Governance & Credit Rating
Corporate Governance & Credit Rating Corporate Governance Rating June’23 Rating Score Main Sections: Avg. 96.57 Board of Directors 95,31 Stakeholders 99,51 Public Disclosure & Transparency 97,25 Shareholders 95,90 0 10 20 30 40 50 60 70 80 90 100 Source: SAHA Corporate Governance and Rating Services
Slide 31: Financial Highlights
Financial Highlights 31 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 32: Annual Financials
Annual Financials 32 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 33: Financial Highlights – 1/3
Financial Highlights – 1/3 Sales Revenue & LPG Sales Volume Gross Profit & Gross Profit Margin Sales Revenue (M TL) Aygaz LPG Sales (k ton) Gross Profit (M TL) Gross Profit Margin (%) 37,507 2,223 9% 9% 9% 7% 1,438 15,893 6% 957 912 9,554 10,211 10,145 634 1,999 2,067 2,151 2,245 2,358 2018 2019 202
Slide 34: Financial Highlights – 2/3
Financial Highlights – 2/3 Net Debt (M TL) Debt Profile as of 31/12/2022 Net TL Loan TL Bond FX Loan Debt/EBITDA 1.2 1.7 3.0 2.2 3.3 2,244 16% 1,682 1,772 1,251 3,599 M TL 52% 859 32% Dec.21 Mar.22 Jun.22 Sep.22 Dec.22 Working Capital (M TL) Trade Payables Trade Receivables Inventory Working Capital
Slide 35: Financial Highlights – 3/3
Financial Highlights – 3/3 CAPEX (M TL) CAPEX Breakdown - 2022 398.5 Cylinders; Other; 14% 17% Autogas; 10% 201.6 Sendeo; Facility 27% Investments; 128 14% 108 90 Pürsu; IT; 6% 8% R&D; 4% 2018 2019 2020 2021 2022 Current Ratio Return on Equity* 1.18 1.2 1.09 1.06 61% 0.98 25% 9% 11% -1% 2018 2019 20
Slide 36: Income Statement Summary
Income Statement Summary Income Statement (M TL) 2018 2019 2020 2021 2022 Revenue 9,554 10,221 10,145 15,893 37,507 COGS (8,920) (9,254) (9,233) (14,455) (35,284) Gross Profit 634 957 912 1,438 2,223 Gross Profit Margin 7% 9% 9% 9% 6% Operating Profit 71 365 241 418 343 Operating Profit Margin 1% 4%
Slide 37: Balance Sheet Summary
Balance Sheet Summary Balance Sheet (M TL) 2018 2019 2020 2021 2022 Cash & Cash Eq. 648 665 961 1,693 1,827 Trade Receivables 440 566 671 1,065 2,459 Inventories 348 263 400 1,433 2,336 Inv. Acc. Under Equity Method 2,305 2,059 1,847 2,161 6,262 Prop. Plant & Equip. 687 713 696 772 984 Financial Deb
Slide 38: LPG and Natural Gas Segment
LPG and Natural Gas Segment 38 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 39: LPG & Brent World Prices
LPG – Brent Prices LPG & Brent World Prices LPG - SP (Algeria) Brent 912 851 772 804 797 720 711 665 650 664 675 620 594 585 574 (USD/Ton) 547 124 506 489 119 113 USD/Barrel 104 113 98 100 93 92 405 355 87 90 81 83 82 85 74 79 76 75 75 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 S
Slide 40: LPG & Natural Gas Financials – Q2 2023
LPG & Natural Gas Financials – Q2 2023 Financials (M TL) Q2 2023 Quarterly / YoY 6M 2023 6M / YoY Revenue 9,568 - 21,867 37% Gross Profit 1,098 124% 1,891 93% Operating Profit 209 378% 417 268% EBITDA (excl. other op. inc/exp) 491 201% 712 82 % Net Profit 127 587% 270 NM* • In Q2 2023, despite the 4
Slide 41: LPG & Natural Gas - Financial Highlights 1/2
LPG & Natural Gas - Financial Highlights 1/2 Net Sales (M TL) Gross Profit & Gross Profit Margin Gross Profit (M TL) Gross Profit Margin (%) 12,300 10,937 10,473 1,098 9,532 9,568 11% 785 792 737 7% 490 7% 6% 5% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 • Q2 net sales reached to 9.
Slide 42: LPG & Natural Gas - Financial Highlights 2/2
LPG & Natural Gas - Financial Highlights 2/2 EBITDA & EBITDA Margin Net Profit & Net Profit Margin EBITDA* (M TL) EBITDA Margin (%) Net Profit (M TL) Net Profit Margin 491 385 233 5% 216 218 221 4% 144 163 127 2% 2% 2% 2% 2% 1% 1% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 -0,3% -26 *excl. other inc/exp from ope
Slide 43: Cargo Handling and Delivery Segment
Cargo Handling and Delivery Segment 43 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 44: Cargo Handling and Delivery – Financials – Q2 2023
Cargo Handling and Delivery – Financials – Q2 2023 Financials (M TL) Q2 2023 Quarterly / YoY 6M 2023 6M / YoY Revenue 148 502% 284 675% Gross Profit (113) -139% (204) -181% Operating Profit (174) -63% (369) -135% EBITDA (excl. other op. inc/exp) (165) -60% (348) -133% Net Profit (132) -32% (282) -91
Slide 45: Consolidated Financials
Consolidated Financials 45 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 46: Consolidated Financials – Q2 2023
Consolidated Financials – Q2 2023 Financials (M TL) Q2 2023 Quarterly / YoY 6M 2023 6M / YoY Revenue 9,715 2% 22,150 39% Gross Profit 986 123% 1,687 86% Operating Profit 35 155% 48 209% EBITDA (excl. other op. inc/exp) 326 439% 364 50% Net Profit (parent company’s shares) 724 -34% 1,412 9% • The pos
Slide 47: Consolidated Financial Highlights
Consolidated Financial Highlights Contribution from EYAŞ* and Entek** Net Profit & Net Profit Margin EYAŞ Entek Net Profit* (M TL) Net Profit Margin (%) 1,901 1,749 1,538 17% 15% 1,081 1,094 935 11% 670 687 724 626 7% 433 6% 103 94 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 *EYAŞ: E
Slide 48: Operational indicators – Q2 2023
Operational indicators – Q2 2023 2Q 2023 Compared 6M 2023 Compared (‘000 ton) to 2Q 2022 (‘000 ton) to 6M 2022 Wholesale and International Sales (‘000 ton) Wholesale International Total Domestic Retail 383 288 22% 566 30% 16% LPG Sales 330 202 Wholesale and 188 7% International 383 16% 874 59% LPG S
Slide 49: Market Information – May'23
Market Information – May’23 Turkish LPG Market (‘000 ton) Aygaz Market Shares Cylinder May’22 May’23 + 28% + 23% 41,3% 40,8% 1,777 1,387 1,356 238 245 1,106 ktons ktons + 3% + 316% 238 245 177 43 Autogas May’22 May’23 Total Autogas Cylinder gas Bulk 22,1% 22,1% Jan-May'22 Jan-May'23 Source: EMRA 1,1
Slide 50: Forward Looking Statements for 2023
Forward Looking Statements for 2023 Cylinder: 245 - 255 k tons Sales Volume Autogas: 750 - 780 k tons* Cylinder: 41.0% - 43.0% Market Share Autogas: 22.0% - 23.0% *It is revised due to the general demand growth in the autogas market. Previous: 730-760 k tons 50 Bu doküman Kurum İçi olarak sınıflandı
Slide 51: Appendix
Appendix 51 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 52: Competitive Advantages of Aygaz
Competitive Advantages of Aygaz Brand Power & ✓ Generic brand – name of LPG in Turkey ✓ Market leader in all segments of the market Consistent Market ✓ Market maker Leader ✓ Advantages of economies of scale ✓ More than 4,000 dealers all over Turkey Strong Sales & Logistics ✓ 5 filling plants, 7 dist
Slide 53: The LPG Value Chain
The LPG Value Chain ~300 1,830 auto gas stations tankers Moving&floating storage capacity of Fixed storage 37,000 m3 capacity of 178,400 m3 ~2,000 bulk gas customers 2.4 million 3 LPG ships belonging to tons of LPG supply the fleet of Anadoluhisarı Tankercilik Gebze Facility; exports of cylinders an
Slide 54: Participation Portfolio
Participation Portfolio Akpa Anadoluhisarı Marketing Shipping 100% 100% Aygaz Opet-Aygaz Naturalgas Real Estate 100% 50% *Enerji Yatırımları A.Ş. owns 46.4% of the shares of TÜPRAŞ ** 100% of the company shares are owned by Aygaz A.Ş.’s full subsidiary Kuleli Tankercilik A.Ş. *** Previous title: Ayg
Slide 55: Share Value
Share Value Aygaz Share Price Dividend (M TL) 386 220 150 150 150 2018 2019 2020 2021 2022 Jan-21 Jan-22 Jun-22 Jan-23 Jun-21 Oct-21 May-22 Oct-22 Mar-21 May-21 Aug-21 Nov-21 Mar-22 Aug-22 Nov-22 Feb-21 Apr-21 Jul-21 Sep-21 Dec-21 Feb-22 Apr-22 Jul-22 Sep-22 Dec-22 BIST Code: AYGAZ Aygaz Share Price
Slide 56: Koç Holding at a Glance
Koç Holding at a Glance Turkey’s Leading Investment Holding Company o Turkey’s largest industrial and services group ~9% ~7% ~7% Combined Revenues/ Total Exports/ R&D expenditure/ o Sustainability oriented business model GDP Turkey’s Exports Total private sector R&Ds1 focusing on profitable growth o
Slide 57: Contact
Contact investorrelations@aygaz.com.tr Gökhan Dizemen, CFO gokhan.dizemen@aygaz.com.tr +90 212 354 1764 Ali Sencer Turunç, Finance, Investor sencer.turunc@aygaz.com.tr +90 212 354 1753 Relations and Strategy Director www.aygaz.com.tr 57 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document
Slide 58: Glossary
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 Natural
Slide 59: Disclaimer
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 variables