Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Investor Presentation (June 2020)
56 slides from Aksa Enerji Uretim A.s's investor presentation, Jun 4, 2020
Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... INVESTOR PRESENTATION 4 JUNE 2020 P O W E R B E Y O N D B O R D E R S
Slide 2: Dedicated Energy Group
Dedicated Energy Group • Fully integrated energy group, active in all segments of the sector • Focused only on the energy sector since 1950s • #1 Gen-Set brand in Turkey & among first 5 in the world • Excellent track record in building and integrating energy businesses • Widest natural gas distribut
Slide 3: Domestic assets under operation, 1,470 MW
4 assets under operation DOMESTIC across Turkey and Northern Cyprus TOTAL Bolu-Göynük 270 MW 1,470 MW Natural Gas (2 plants) 1,047 MW 71% Fuel-Oil (1 plant) 153 MW 11% Lignite (1 plant) 270 MW 18% Şanlıurfa Antalya 147 MW 900 MW Northern Cyprus 153 MW 2
Slide 4: Overseas assets under operation, 476 MW
4 assets under operation OVERSEAS across Africa TOTAL Aksa Energy owned 3 power 476 MW* plants are operational since 2017. Madagascar’s refurbished 24 MW power plant is operational since * Does not include CTA-2 end of 2018. Ghana HFO Power Plant became operational at the end of March 2017 with 192.
Slide 5: International Expansion
INTERNATIONAL EXPANSION
Slide 6: Aksa Energy in Africa
Aksa Energy in Africa Ghana Madagascar Mali Population 31.7 mn Population 27.7 mn Population 20.2 mn GDP $ 72.3 bn GDP $ 13.5 bn GDP $ 19.3 bn GDP per capita $ 2,326 GDP per capita $ 530 GDP per capita $ 955 Installed Capacity 4,962 MW Installed Capacity 844 MW Installed Capacity 445 MW Energy Consu
Slide 7: Ghana Power Plant 370 MW
Ghana Power Plant 370 MW Construction completed in 9.5 months, utilising existing equipment from idle PPs in Turkey, reducing cash CAPEX. 5
Slide 8: Ghana power purchase agreement
Ghana Aksa Energy signed a PPA with the Republic TOTAL INSTALLED CAPACITY (MW) of Ghana pertaining to construction of a power plant, electricity generation and 6.000 take-or-pay electricity sales. 5.000 • 6.5 year power purchase agreement (PPA) with 4.000 Republic of Ghana • PPA started in August 20
Slide 9: Ghana – Fast Track, USD Based Cash Generation
Ghana – Fast Track, USD Based Cash Generation Cash CAPEX recovered • Construction completed in only 9.5 months in June 2018 • Became operational at the end of March with 192.5 MW and increased to 280 MW at the beginning of August 2017 • Reached 370 MW final capacity in November 2018 • c.22% of consu
Slide 10: Ghana Power Plant
Ghana Power Plant Guaranteed Capacity Charge • 223,5 MW guaranteed capacity has been working since August 2017. To provide this guaranteed capacity, 280 MW capacity was installed. over 332 MW out of 370 MW Installed Capacity. • Additional engines to take the capacity to 370 MW were commissioned in N
Slide 11: Madagascar Power Plant 66 MW
Madagascar Power Plant 66 MW Construction completed in 7 months, utilising existing equipment from idle PPs in Turkey, reducing cash CAPEX. 9
Slide 12: Madagascar
Madagascar 20 year power purchase agreement (PPA) in INSTALLED CAPACITY (MW) the Republic of Madagascar with Jiro Sy Rano Malagasy (Jirama), the state-owned 900 electricity and water services company. 750 • Initially established a 58.35% subsidiary in the 600 Republic of Mauritius with a local partn
Slide 13: Madagascar Key Points
Madagascar Key Points • Aksa Energy’s current 66 MW is able to provide 39% of consumption in the country if fully dispatched Cash CAPEX recovered in • Constitutes c. 8% of total installed capacity in Madagascar February 2018 • Advance payment ($3 mn) was received • Became operational in July with 25
Slide 14: Madagascar CTA-2 Power Plant – O&M Contract
Madagascar CTA-2 Power Plant – O&M Contract Rehabilitated and • Madagascar has a strategy of activating its existing sleeping assets. Out of these commissioned the assets, a 5-year Operation & Maintenance contract for a 24 MW power plant sleeping asset was secured. • Rehabilitation of the power plan
Slide 15: Mali Power Plant
Mali Power Plant Operational since August 2017 Construction completed in 6 months, utilising existing equipment from idle PPs in Turkey, reducing cash CAPEX. 13
Slide 16: Mali
Mali Emergency power purchase agreement with INSTALLED CAPACITY (MW) Énergie du Mali for the guaranteed sale of the energy generated via EURO based tariff 400 • 40 MW power plant in the capital of Republic of Mali, Bamako • 3 year contract signed with Énergie du Mali for 200 445 the guaranteed sale
Slide 17: Mali – Key Points
Mali – Key Points Negotiating with • € 4 mn mobilisation fee is received Énergie du Mali to • € 1.6 mn payment guarantee is received increase contract duration and size. • Became operational at the beginning of August with 10 MW • Full commissioning (40 MW) completed in September 2017 • 30 MW guaran
Slide 18: Turkey & Africa
Turkey & Africa While continuing its investments in Turkey, 1Q20 EBITDA Aksa Energy has moved toward becoming a global brand with the investments it has undertaken in Africa. Turkey Africa+Northern Turkey Cyprus PPs constitute 82% of EBITDA Mali Africa Ghana Madagascar 16
Slide 19: Overseas Operations
OVERSEAS OPERATIONS
Slide 20: Overseas Operations - The Tariff Structure
Overseas Operations - The Tariff Structure • The tariffs of Aksa Energy’s overseas power plants, including the one in TRNC and CTA-2 Power Plant, which is operated on behalf of Madagascar, consist of two components: Hard currency denominated tariffs o The first component is the guaranteed capacity c
Slide 21: Overseas Operations - Ghana/Madagascar/Mali/TRNC
Overseas Operations- Ghana/Madagascar/Mali/TRNC Higher generation in • Generation in Africa was up by 26% YoY Africa YoY o Dispatch orders continue to be driven by the countries’ need to manage their balance sheet and the amount of rain fall. • Generation at TRNC Power Plant was at the same level •
Slide 22: New Overseas Contract
NEW OVERSEAS CONTRACT
Slide 23: New Contract in Uzbekistan
Overseas Operations- New Contract in Uzbekistan • 25 year power purchase agreement (PPA) Aksa Energy signed a 25 • With the Ministry of Energy of Uzbekistan year- PPA with the • Guaranteed capacity payment set in USD Ministry of Energy of Uzbekistan pertaining to • 240 MW natural gas combined cycle
Slide 24: Potential International Operations
POTENTIAL INTERNATIONAL OPERATIONS
Slide 25: Potential Opportunities for 2020 & Beyond
Potential Opportunities for 2020 & Beyond Uzbekistan Mali Senegal Chad Burkina Faso Guinea Benin Ghana Cameroon Gabon Congo Tanzania Angola Madagascar 20
Slide 26: Turkish Operations
TURKISH TURKISHOPERATIONS OPERATIONS
Slide 27: Natural Gas Prices vs Spot Energy Prices
MARKET HIGHLIGHTS Natural Gas Prices vs Spot Energy Prices In 1Q2020, BOTAŞ natural gas BOTAŞ NATURAL GAS TARIFF vs ENERGY PRICES (TRY) tariff rose by 3.2% YoY while 500 average spot energy prices 450 increased by 24% YoY due to 400 1650 1650 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 1500 15
Slide 28: Turkish Operations – USD based visibility in coal fired PP
Turkish Operations – USD based visibility in coal fired PP • The regulator amended the “Purchase of Electricity from Private Companies Bolu, TRNC, Ghana, Operating Only Domestic Coal-Fired Power Plants” for 2020 and beyond. Mali and Madagascar power • TRY denominated power purchases of EUAS are part
Slide 29: Turkish Operations- Profitability Before Volume
FINANCIAL HIGHLIGHTS Turkish Operations- Profitability Before Volume High margin coal fired • Local power plants’ production in 1Q2020 was 29% lower YoY due to low capacity utilisation rates at CCGT PPs business along with peak hour generation at o CCGT PPs were utilised at peak hours to maximise pr
Slide 30: Bolu Coal Fired PP Benefits from High Price Scheme
MARKET HIGHLIGHTS Turkish Operations – Bolu Coal Fired PP Benefits from High Price Scheme The YoY increase (+15%) in spot energy EÜAŞ PURCHASE TARIFF vs AVG SPOT PRICES (TRY) prices improved the profitability of our local coal fired power plant, Bolu PP 350 significantly. We sell about half of our 3
Slide 31: Financial & Operational Highlights 1Q 2020
FINANCIAL & OPERATIONAL HIGHLIGHTS 1Q 2020
Slide 32: 1Q2020 Results Sales Breakdown (Turkey + TRNC)
FINANCIAL HIGHLIGHTS 1Q2020 Results Sales Breakdown (Turkey + TRNC) 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q2020 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern Cyprus 174.854 701 175.484 777 179.710 743 175.800 747 174.866 820 BSM (Spot 1.947.755 283 2.255.051 257 2.836.432 274 2.763
Slide 33: Sales Breakdown (Turkey+TRNC vs Africa)
FINANCIAL HIGHLIGHTS 1Q2020 Results Sales Breakdown (Turkey+TRNC vs Africa) 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q2020 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET 4.750.117 325 2.988.191 301 3.577.429 275 4.101.233 289 4.817.096 287 (Including N.Cyprus) AFRICAN 341.483 1.1
Slide 34: 1Q2020 Results Snapshot
FINANCIAL HIGHLIGHTS 1Q2020 Results Snapshot QoQ 1Q 2019 1Q 2020 YoY Change 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 Change Installed Capacity* 1.946 MW 1.946 MW 1.946 MW 1.946 MW 1.946 MW - 1.946 MW 1.946 MW - Sales Volume (GWh) 3.260 3.871 4.323 5.058 5.092 1% 3.260 5.092 56% Net Sales (TRY mn) 1.1
Slide 35: Further improvement in Net Financial Debt/EBITDA ratio
FINANCIAL HIGHLIGHTS 1Q2020 Results Further improvement in Net Financial Debt/EBITDA ratio EBITDA (TRY mn) NET FINANCIAL DEBT/EBITDA 450 402 400 371 364 10 351 350 350 306 7,8 300 277 8 7,3 6,6 250 233 217 5,6 6 200 4,4 4,4 4,1 150 4 3,6 3,3 2,8 2,6 100 2,1 2,1 2 50 0 0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
Slide 36: Net Financial Debt – $185mn YoY Debt Reduction
FINANCIAL HIGHLIGHTS 1Q2020 Results Net Financial Debt – $185mn YoY Debt Reduction Aksa Energy’s net financial debt NET FINANCIAL DEBT (USD mn) decreased from $860 mn in YE2015, when the decision to expand to Africa was taken, to $736 mn in YE2017 through 850 asset sales. 750 Net financial debt furt
Slide 37: Regional EBITDA Breakdown
FINANCIAL HIGHLIGHTS 1Q2020 Results Regional EBITDA Breakdown REVENUES (TRY mn) Although 80% of the revenues are generated from Turkey and 376 TRNC, African power plants 20% Turkey + Northern Cyprus generated 70% of the EBITDA in Africa 1Q20 due to their high margin 1.471 FX based sales & capacity 8
Slide 38: EBITDA Breakdown by Currency & Fuel
FINANCIAL HIGHLIGHTS 1Q2020 Results EBITDA Breakdown by Currency & Fuel EBITDA BY FX RATE Hard currency portion of the EBITDA constitutes 82% of the 18% total in 1Q20. TRY Based Hard Currency In 1Q20, only Antalya CCGT was operational (Urfa CCGT 82% was suspended). Due to low spark spreads and EBITD
Slide 39: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Financial Highlights 1Q2020 Consolidated Income Statement NET SALES & EBITDA (TRY MN) 1.847 1.779 1.847 1.155 351 371 364 371 Net Sales EBITDA Net Sales EBITDA 1Q2019 1Q2020 4Q2019 1Q2020 OPERATING INCOME & NET INCOME (TRY MN) 268 268 238 228 108 107 106 107 Operating Income Net
Slide 40: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights 1Q2020 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 4.000 85% 90% 76% 3.500 67% 80% 3.000 70% 2.500 60% 62% 62% 50% 2.000 40% 1.500 45% 45% 30% 1.000 20% 500 1.781 2.501 2.744 2.777 3.692 3.142 3.195 10% - 0% 5,2 5,6 6,3 5,6 3,6 2,1 2,
Slide 41: Share Performance
Share Performance AKSA ENERGY (AKSEN TI) Aksa Energy trades on 6,00 60.000.000 BIST 100, BIST 50 & 5,00 50.000.000 Sustainability indices 4,00 40.000.000 DAILY VOLUME 3,00 30.000.000 PRICE (TRY) 03 June 2020 2,00 20.000.000 •MCAP TRY 2,931 bn / $ 435 mn 1,00 10.000.000 •Avg Shrs Traded (3 mos) 9.8 m
Slide 42: Effect of Brent Oil and FX Rate Changes on Receivables
MARKET HIGHLIGHTS Effect of Brent Oil and FX Rate Changes on Receivables 6,52 7,00 2.000 5,87 5,94 5,62 5,51 5,66 6,00 5,36 1.856 1.927 1.802 5,00 1.500 4,36 1.724 3,80 3,81 1.539 1.549 4,00 1.284 1.000 1.113 3,00 901 2,00 500 675 424 371 401 375 325 339 353 334 1,00 233 255 - 0,00 4Q17 1Q18 2Q18 3Q
Slide 43: Guidance
3, 2020 GUIDANCE
Slide 44: 2020 Guidance
FINANCIAL HIGHLIGHTS 2020 GUIDANCE REVENUES: TRY 5.259 mn 2020 EBITDA BREAKDOWN EBITDA: TRY 1.445 mn CAPEX: TRY 155 mn African power plants are forecast to account for 72% of the projected EBITDA for 2020. Turkey & In 2020, Bolu Goynuk Thermal Energy Power Plant and Ali TRNC Metin Kazancı Natural Ga
Slide 45: Turkish Market
TURKISH MARKET
Slide 46: 1Q20 Key Figures - The Sector
MARKET HIGHLIGHTS 1Q20 Key Figures - The Sector GENERATION BY FUEL TYPE 1Q19 GENERATION BY FUEL TYPE 1Q20 Hydro Wind 30% 9% Wind Hydro Others 9% 31% 4% Generation via natural gas Fuel Oil 1% Others 5% inreased by 1 ppt, while Natural gas generation from hydro and 20% Fuel Oil coal decreased by 1 ppt
Slide 47: Installed Capacity Changes by Fuel Type
MARKET HIGHLIGHTS Installed Capacity Changes by Fuel Type 1Q2020 – 1Q2019 CAPACITY CHANGES Total installed capacity in Turkey Fossil Renewable has reached 91.496 MW in 1.400,00 1Q2020, indicating an increase 1.200,00 of 2.382 MW YoY (+2,7 %). 1.000,00 800,00 600,00 1.234 400,00 561 When new and deco
Slide 48: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption In 1Q2020, electricity generation and consumption increased by 3% YoY. GENERATION (GWh) CONSUMPTION (GWh) 80.000 80.000 70.000 70.000 60.000 60.000 50.000 50.000 40.000 40.000 72.053 74.012 71.793 74.127 30.000 30.000 20.000 20.000 10.000 10.000 - - 2019-1Q
Slide 49: Appendix
APPENDIX
Slide 50: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY) FY2017 FY2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 Net sales 3.599.311.868 4.669.249.102 1.155.422.198 2.312.965.207 3.799.886.130 5.578.594.781 1.846.833.556 Cost of sales -3.283.982.668 -3.933.709.353 -892.164.845 -1.749.780.328 -2.996.237.096
Slide 51: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Assets (TRY) 2017 2018 2019 31.03.2019 31.03.2020 Cash and cash equivalents 59.577.791 53.026.362 121.503.123 116.463.204 309.157.528 Trade receivables net 759.563.092 1.403.203.217 1.863.493.659 1.655.650.367 2.069.427.962 Due from related parties and
Slide 52: Consolidated Statement of Cash Flow
FINANCIAL HIGHLIGHTS Consolidated Statement of Cash Flow (TRY mn) 2017 2018 2019 1Q2019 1Q2020 Net income (loss) before tax 290.120.538 150.478.434 455.343.289 108.039.568 107.205.860 Depreciation and amortisation 225.000.265 394.018.340 485.469.510 112.652.450 109.068.725 Other adjustments 113.887.
Slide 53: 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 370 Mali Aksa Energy Fuel-oil 40 Madagascar Aksa Energy Fuel-oil 66 Total Fuel-Oil Fired Power Plants 629 32% Antalya NGCC Aksa Energy Natural Gas 900
Slide 54: Planned Investments
Planned Investments Power Plant Fuel Type Installed Capacity (MW) Completion Year Uzbekistan Natural Gas 240 2021 Uzbekistan power plant will utilise the existing equipments from Ali Metin Kazancı Antalya Natural Gas Combined Cycle Power Plant, which had left the transmission system following the pa
Slide 55: Contact Investor Relations
Contact Investor Relations Özlem McCann Director Head of Investor Relations and Corporate Communications Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Özalp Çıkmazı No:10 Kavacık / Beykoz, Istanbul
Slide 56: 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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