Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Investor Presentation (July 2018)
47 slides from Aksa Enerji Uretim A.s's investor presentation, Jul 19, 2018
Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... INVESTOR PRESENTATION 19 JULY 2018 P O W E R B E Y O N D B O R D E R S
Slide 2: Assets under operation across Turkey and Northern Cyprus
5 assets under operation CURRENT across Turkey and Northern Cyprus TOTAL Bolu-Göynük 270 MW 1,835 MW Natural Gas (3 plants) 1,412 MW 77% Fuel-Oil (1 plant) 153 MW 8% Lignite (1 plant) Manisa 270 MW 15% 115 MW Şanlıurfa Antalya 147 MW 1,150 MW Northern Cyprus 153 MW 1
Slide 3: Assets under operation across Africa
3 assets under operation CURRENT across Africa TOTAL Aksa Energy’s installed 386 MW capacity in Africa will reach 530 MW once the power plants reach full capacity. 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 Mal
Slide 4: Pipeline of 2 international extension projects
Pipeline of INSTALLED PIPELINE INSTALLED CAPACITY CAPACITY 2 international extention projects 2.365 MW adding 144 MW 2.236 MW to our portfolio 15 270 270 The favorable effects of these power plants on our financials have 1.412 become clearly visible 1.412 from 3Q2017. Pipeline of 144 MW is made up o
Slide 5: International Expansion
“INTE RNATIONAL .. “EXPANSION ea r
Slide 6: Aksa Energy in Africa
Aksa Energy in Africa Ghana Madagascar Mali Population 28.8 mn Population 25.6 mn Population 18.5 mn GDP $ 47.33 bn GDP $ 11.5 bn GDP $ 15.3 bn GDP per capita $ 1,641 (real) GDP per capita $ 450 GDP per capita $ 825 Installed Capacity 4,440 MW Installed Capacity 676 MW Installed Capacity 535 MW Ener
Slide 7: 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 8: Ghana
Ghana Aksa Energy signed a deal with the Republic TOTAL INSTALLED CAPACITY (MW) of Ghana pertaining to construction of a power plant, electricity generation and 5.000 take-or-pay electricity sales. 4.000 • 6.5 year power purchase agreement (PPA) with Republic of Ghana for installation of a 370 MW HF
Slide 9: 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 10: Madagascar HFO Power Plant 1st Phase Completed
Madagascar HFO Power Plant 1st Phase – 66 MW Completed *Picture as at July 2018 8
Slide 11: Madagascar
Madagascar 20 year power purchase agreement (PPA) in INSTALLED CAPACITY (MW) the Republic of Madagascar with Jiro Sy 600 Rano Malagasy (Jirama), the state-owned electricity and water services company. 400 • Established a 58.35% subsidiary in the Republic of Mauritius (Aksaf Power Ltd) with a local p
Slide 12: Madagascar Key Points
Madagascar Key Points • 61% of consumption in the country to be provided by Aksa Energy when both phases are operational • Advance payment ($3 mn) is received • Became operational in July with 25 MW and increased to 50 MW at the beginning of August • First phase (66 MW) was commissioned at the end o
Slide 13: Mali HFO Power Plant Operational since August 2017
Mali HFO Power Plant Operational since August 2017 *Picture as at July 2018 11
Slide 14: Mali
Mali Emergency power purchase agreement INSTALLED CAPACITY (MW) with Énergie du Mali for the guaranteed 400 sale of the energy generated via EURO based tariff. • 40 MW HFO power plant in the capital of Republic of Mali, Bamako 200 • 3 year contract signed with Énergie du Mali for the 380 guaranteed
Slide 15: 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 • 13% of consumption in the c
Slide 16: 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 76% of EBITDA in 2018 Mali Ghana Madagascar Africa 14
Slide 17: 2018 Developments
2018 DEVELOPMENTS
Slide 18: New Agreement – Madagascar Refurbishment Project (24 MW)
2018 DEVELOPMENTS New Agreement- Madagascar Refurbishment Project (24 MW) Aksa Energy’s subsidiary, Aksaf • The power plant, owned by Jirama, will be rehabilitated to become operational and Aksa Energy will operate the power plant for 5 years. Power Ltd., signed an agreement with Societe Jiro Sy Ran
Slide 19: Potential Opportunities for 2018 and Beyond
Potential Opportunities for 2018 and Beyond Mali Senegal Chad Burkina Faso Guinea Benin Ghana Togo Cameroon Gabon Indonesia Tanzania Angola Madagascar 16
Slide 20: BIST 50 Index
2018 DEVELOPMENTS BIST 50 Index Borsa Istanbul has included Aksa Energy shares (AKSEN) in the BIST 50 Index as of 2nd July for the third quarter of 2018. The company’s stock is now a component of the BIST 50, BIST 100 and Sustainability indices. 15
Slide 21: Financial & Operational Highlights 1Q 2018
FINANCIAL & OPERATIONAL HIGHLIGHTS 1Q 2018
Slide 22: 1Q 2018 Results – Sales Breakdown (Turkey+N.Cyprus)
FINANCIAL HIGHLIGHTS 1Q 2018 Results Sales Breakdown (Turkey+N.Cyprus) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern Cyprus 179,631 378 175,906 388 176,615 380 175,897 431 175,664 467 Renewable Market 192,332 266 112,655 272 116,784 263
Slide 23: 1Q 2018 Results Snap Shot
FINANCIAL HIGHLIGHTS 1Q 2018 Results Snap Shot 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 QoQ Change 1Q 2017 1Q 2018 YoY Change Installed Capacity 2,104 MW 2,211 MW 2,377 MW 2,236 MW 2,221 MW -15 MW 2,104 MW 2,221 MW 117 MW Sales Volume (GWh)* 4,676 3,764 4,204 4,310 3,778 -12% 4,676 4,211 -10% Net Sal
Slide 24: Rapid improvement in Net Financial Debt/EBITDA ratio
FINANCIAL HIGHLIGHTS 1Q 2018 Results Rapid improvement in Net Financial Debt/EBITDA ratio EBITDA NET FINANCIAL DEBT/EBITDA TRY mn No +35% renewable contribution 10 but full 250 Renewable Limited Africa 8,6 contribution renewable 8,3 and partial contribution 217 Africa but full 8 200 Africa 7,1 174 R
Slide 25: 1Q 2018 Results – Sales Breakdown
FINANCIAL HIGHLIGHTS 1Q 2018 Results Sales Breakdown 9M 2017 FY 2017 4Q 2017 1Q 2018 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET 12,644,181 169 16,953,769 170 4,309,588 173 3,778,091 187 (Including N.Cyprus) AFRICAN MARKET 591,853 661 963,832 698 371,979 757 432,862 732 TOTAL 13,2
Slide 26: 1Q 2018 Results – Regional Breakdown
FINANCIAL HIGHLIGHTS 1Q 2018 Results Regional Breakdown REVENUES (TRY mn) Although 74% of the revenues are generated from Turkey and 317 TRNC, African power plants generated 77% of the EBITDA in 705 1Q18 due to their high margin FX based sales. TURKEY+N.CYPRUS AFRICA EBITDA (TRY mn) 49 168 TURKEY+N.
Slide 27: 1Q 2018 Results – Regional Breakdown (Africa EBITDA)
FINANCIAL HIGHLIGHTS 1Q 2018 Results Regional Breakdown EBITDA (TRY mn) YoY regional comparison is not meaningful 168 for 1Q18 as there was only a very small revenue contribution from Ghana PP in 1Q17 and no positive contribution at the EBITDA level. Mali and Madagascar PPs were not operational in 1
Slide 28: Consolidated Income Statement Highlights
FINANCIAL HIGHLIGHTS Financial Highlights 1Q 2018 Consolidated Income Statement NET SALES & EBITDA (TRY MN) 3.599 EBITDA Margin 3.178 EBITDA Margin 1Q17: 8.4% FY16: 13.7% 1Q18: 21.3% FY17: 13.7% 1.022 493 738 435 62 217 Net Sales EBITDA Net Sales EBITDA 1Q2017 1Q2018 2016 2017 OPERATING INCOME & NET
Slide 29: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights 1Q 2018 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 3.500 86% 90% 89% 88% 100% 3.000 76% 80% 2.500 62% 62% 62% 2.000 60% 1.500 3.086 3.299 3.096 2.984 2.742 2.777 2.859 40% 1.000 1.781 20% 500 0 0% 2014 2015 2016 1Q17 2Q17 3Q17 2017 1
Slide 30: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY mn) 31/12/2015 31/12/2016 31/12/2017 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 Net sales 2,306.7 3,178.2 3,599.3 738.4 874.6 952.4 1,033.9 1,022.1 Cost of sales -1,979.5 -2,907.2 -3,284.0 -714.7 -824.1 -814.4 -930.8 -857.1 Gross profit 327.2 271.0 315
Slide 31: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Assets (TRY mn) 31.12.2015 31.12.2016 31.12.2017 1Q2018 Cash and cash equivalents 48.5 219.4 59.5 36.9 Trade receivables net 119.8 219.7 759.5 989.15 Due from related parties and shareholders 67.3 59.9 41.3 29.2 Inventory 339.8 416.4 426.8 500.03 Deriv
Slide 32: Consolidated Statement of Cash Flow
FINANCIAL HIGHLIGHTS Consolidated Statement of Cash Flow (TRY mn) 31/12/2015 31/12/2016 31/12/2017 1Q2018 Net income (loss) before tax -221.1 -367.6 290.2 68.21 Depreciation and amortisation 146.6 191.2 225 65 Other adjustments 195.1 623.9 232.6 61.87 Change in working capital -246.9 -481.8 -54.1 -2
Slide 33: Guidance
2018 GUIDANCE
Slide 34: 2018 Guidance
FINANCIAL HIGHLIGHTS 2018 GUIDANCE 2018 EBITDA BREAKDOWN 2018 EBITDA GUIDANCE (TRY) • SALES: 11.3 TWh • REVENUES: TRY 3.4 bn TURKEY+ N.CYPRUS • CAPEX*: TRY 120 mn 24% • EBITDA**: TRY 840 mn 840 642 AFRICA 76% 198 TURKEY+N.CYPRUS AFRICA TOTAL * Includes maintenance CAPEX in Turkey and Africa and the
Slide 35: 2018 Guidance – EBITDA Distribution
FINANCIAL HIGHLIGHTS 2018 GUIDANCE In YE2018, Aksa Energy is EBITDA DISTRIBUTION (%) expected to generate 76% of its EBITDA from its African power plants while 24% from Turkey 24% 18% and Northern Cyprus (TRNC). As TRNC agreement is also a PPA in USD, 82% of 76% 82% Aksa Energy’s EBITDA is expected
Slide 36: Asset Sale
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Slide 37: 355 MW Asset Sale – USD 411.6 mn
ASSET SALE 355 MW Asset Sale – USD 411,6 mn The cash proceeds are used for decreasing the COMPLETED short term liabilities. 96 MW HEPP & 259 MW WPP Kozbükü, Sebenoba, Karakurt, Ayvacık, Kapıdağ, Belen/Atik, Kıyıköy, Şamlı, İncesu 2016: $89 mn 2017: $286 mn 2018: $15 mn 2018: $36,6 mn* TOTAL: $411,6m
Slide 38: Turkish Market
TURKISH MARKET
Slide 39: 1H2018 – Key Figures
MARKET HIGHLIGHTS 1H2018 – Key Figures GENERATION BY FUEL TYPE Generation via natural gas 3% 1% Fuel-Oil decreased by 5 ppts YoY mostly 6% due to the increase in natural gas Lignite & Coal prices and the low spark spread. 37% Natural gas 23% Hydro On the other hand, generation Wind from coal & ligni
Slide 40: Installed Capacity Changes by Fuel Type
MARKET HIGHLIGHTS Installed Capacity Changes by Fuel Type 1H2018 – 1H2017 CAPACITY CHANGES When new and decommissioned capacities are Fossil Renewable netted off, there is an increase MW 3.815 of 1.447 MW in coal & lignite, 4.000 125 MW in natural gas, 673 MW 3.000 1.447 in hydro, 462 MW in wind and
Slide 41: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption Electricity generation increased by 2% and consumption by 3% YoY in 1H2018. GENERATION (GWh) CONSUMPTION (GWh) 138.423 141.842 141.903 138.252 1H2017 1H2018 1H2017 1H2018 33
Slide 42: Prices
MARKET HIGHLIGHTS Prices WEIGHTED AVERAGE PRICE (TRY) Weighted average 230 195 187 188 178 181 spot price in 1H18 180 161 177 184 was TRY 181, 12% 130 185 178 148 148 156 151 180 168 178 158 higher than TRY 162 80 in 1H17. 2017 2018 WEIGHTED AVERAGE PRICE (TRY) 188 190 180 181 176 175 176 171 168 17
Slide 43: Appendix
APPENDIX
Slide 44: Operational Assets
Operational Assets 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 45: 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 2019 Total 144 The above projects are utilising mostly existing equipments from Şırnak, Hakkari, Mardin 1, Mardin 2, Samsu
Slide 46: 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 47: Disclaimer
Disclaimer 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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