Aksa Enerji Uretim A.s. · BIST:AKSEN

Aksa Enerji Uretim A.s — Investor Presentation (June 2016)

40 slides from Aksa Enerji Uretim A.s's investor presentation, June 2016

  1. Slide 1: Investor Presentation June 2016

    Investor Presentation June 2016

  2. Slide 2: Key investment highlights

    Key investment highlights 1 Part of a dedicated energy group 2 Largest quoted Independent Power Producer (IPP) in Turkey 3 Strong exposure to growing Turkish electricity market 4 Large portfolio with 16 operational assets totalling 2,198 MW 5 Diversified pipeline of 7 projects adding 496 MW to our p

  3. Slide 3: We are part of a dedicated energy group

    We are part of a dedicated energy group  Entered energy business in 1960s with the production of generating sets  Focused only on the energy sector since then  Gradually expanded into main segments of electricity & natural gas Kazancı Group  Excellent track record in building and integrating ene

  4. Slide 4: We are the largest quoted IPP in Turkey with 2,198 MW installed capacity

    We are the largest quoted IPP in Turkey with 2,198 MW installed capacity IPPs by Installed Capacity 2.800 2.800 2.198 1.665 1.490 (MW) 1.292 1.011 952 365 Enerjisa Limak Aksa Enerji İÇDAŞ Eren Enerji Akenerji Zorlu Enerji Cengiz Enerji AES Entek Source: Information obtained from each IPP’s annual re

  5. Slide 5: We provide strong exposure to the growing Turkish electricity market

    We provide strong exposure to the growing Turkish electricity market 1 Strong Electricity Demand Growth (1) 2 Increasing per Capita Consumption (2) TWh 500 CAGR – High Demand: 7.3% 463 High Demand MWh/pa 450 Scenario 9 400 8 Low 350 7 264 381 Demand 300 Scenario 6 250 CAGR: 5.3% 5 CAGR – Low Demand:

  6. Slide 6: We have 16 assets under operation across Turkey

    We have 16 assets under operation across Turkey 15 1 ÇORUM-İNCESU KIYIKÖY 15 MW 27 MW BOLU-GÖYNÜK 16 2 270 MW AYVACIK AYRES 5 MW 3 BALIKESİR KAPIDAĞ 24 MW 4 BALIKESIR ŞAMLI 114 MW Total 2,198 MW 5 MANISA KARAKURT 11 MW 6 ŞIRNAK 14 MANISA 115 MW 24 MW 7 13 ANTALYA MARDIN-2 ŞANLIURFA 11 33 MW 1,150 MW

  7. Slide 7: Each of our assets has key specifications to fortify our strategy

    Each of our assets has key specifications to fortify our strategy A Baseload Natural Gas Fired PP – Antalya D Wind Farms  Located in a favorable wind  One of the most efficient CCGT corridor with high load factors plants in Turkey, with a  7 farms, with a total capacity of capacity of 1,150 MW wi

  8. Slide 8: Company Highlights - Cost Structure (TL)

    Company Highlights - Cost Structure (TL) Cost Structure vs. Sales Price (1Q 2016) Improving Lower Cost Output % of Weighted Avg. Weighted Avg. Renewables Cost 143 Sales Price 173,7 Local 61% 76% Sourcing TL/MWh 200,3 4,178 GWh 200 30,2 160 155,5 146,3 3,013 GWh 130,0 129,8 32,5 2.618 63 18,0 120 76

  9. Slide 9: Company Highlights - Sales mix and prices (TL)

    Company Highlights - Sales mix and prices (TL) Capacity 44% 80% (adj) Utilization TWh 15 14 TWh 14 Balancing Market 13 Northern Cyprus BSM 36% 12 Sales 5 Wholesale Bilateral 11 to BSM 10 Retail Bilateral 9 4.2 TWh 8 7 6 Total Contracted 64% 5 86% BSM 3.63.6 Contracted 4 9 Sales 3 2 14% Contracted 0.

  10. Slide 10: Shifting bilateral mix towards more profitable commercial clients

    At the same time, we are shifting bilateral mix towards more profitable commercial clients Increasing Contracted Volume Supported by Evolution of Eligibility Limit Affiliated Distribution Regions 1.5x 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 # of Bilateral 245 610 1,275

  11. Slide 11: Increased efficiencies of CCGT plants and cut OPEX

    We have successfully increased efficiencies of our CCGT plants and managed to cut our OPEX to improve our cost base Low Unit Capex Improving Fuel Efficiency US$m/MW TL/MWh 56% 180 54% CCGT 0,4 160 52% Wind 1,4 140 50% 48% 120 Lignite 1,5 46% 100 44% Hydro 1,6 80 42% 2010 2011 2012 2013 2014 2015 0,0

  12. Slide 12: Aksa Enerji - Business Update

    Aksa Enerji- Business Update  Bolu Göynük’s 1st phase (135 MW) became operational in July 2015 and the 2nd phase (135 MW) in January 2016.  Sebenoba WPP’s extention has been completed and a total of 17 MW installed capacity has become operational in 1H15, increasing the installed capacity of WPPs

  13. Slide 13: Aksa Enerji - Business Update

    Aksa Enerji- Business Update  18 MW from Samsun CCGT plant was installed in Şanlıurfa CCGT to increase its capacity to 147 MW.  33 MW from Samsun CCGT plant was installed in Northern Cyprus HFO to increase its capacity to 153 MW.  Remaining 80 MW capacity from Samsun is planned to be deployed to

  14. Slide 14: Ghana PPA - To provide fast track USD based cash generation

    Ghana PPA- To provide fast track USD based cash generation  5 year power purchase agreement (PPA) with Republic of Ghana for installation of a 370 MW HFO plant, electricity generation and the guaranteed sale of this energy.  Approved by the parliament of Republic of Ghana  Can be extended before

  15. Slide 15: 2016 Guidance – Financials

    2016 Guidance – Financials  Sales: 15.4 TWh ( bilateral and BSM sales)  Revenues: TRY 2.5 bn (adjusted)  Average Aksa Price: TRY 160-163 (vs expected average market price of TRY141)  CAPEX: USD 140 mn  EBITDA: TRY 500 mn 14

  16. Slide 16: The Sector

    a K S a ENERGY, The Sector Aksa Energy The Leading IPP in Turkey

  17. Slide 17: Market Highlights - Generation & Consumption

    Market Highlights- Generation & Consumption  Electricity generation and consumption both increased by 10% YoY in 1Q16. Generation (GWh) Consumption (GWh) 70.000 70.000 64.705 63.284 57.430 58.784 60.000 60.000 50.000 50.000 40.000 40.000 30.000 30.000 20.000 20.000 10.000 10.000 0 - 1Q15 1Q16 1Q15

  18. Slide 18: Market Highlights - Installed Capacity Changes

    Market Highlights - Installed Capacity Changes  Total installed capacity in Turkey has reached 1Q16 Installed Capacity: 74,039 MW 74,039 MW in 1Q16, indicating a 5% increase YoY. Hydro; 35%  When new and decommissioned capacities are Wind; 6% netted off, there is 835 MW increase in coal & Others;

  19. Slide 19: Market Highlights - Prices

    Market Highlights - Prices Weighted average prices were down 17% YoY in 1Q16. The main reasons being:  the increased production from renewable capacities at low cost  Increased participation at YEKDEM scheme causing no-concern for water retention to sell at peak season  Excess capacity 180,0 176

  20. Slide 20: 1Q2016

    a K S a ENERGY, 1Q2016 Aksa Energy The Leading IPP in Turkey

  21. Slide 21: 1Q2016 Results - Snap Shot

    1Q2016 Results - Snap Shot * Adjusted Adjusted Actual 1Q15 4Q15 1Q16 YoY Change QoQ Change Installed Capacity (MW) 2.151 2.076 2.198 60 MW 135 MW Sales Volume (GWh) 3.013 4.093 4.178 39% 2% Net Sales (TL mn) 544 708 726 33% 3% Gross Profit (TL mn) 58 48 71 23% 47% Operating Inc. (TL mn) 54 42 68 27%

  22. Slide 22: 1Q 2016 Results – Sales Breakdown

    1Q 2016 Results – Sales Breakdown * 1Q 2015 1Q 2016 MWh TL/MWh MWh TL/MWh Northern Cyprus 170.814 261,78 174.808 212,1 Renewable Market (YEKDEM)* 99.740 168,52 231.572 214,8 BSM (Spot Market Sales) 1.081.536 170,86 674.978 227,2 Affiliated DisCos 107.683 179,69 76.134 127,2 OTC & Bilateral** 1.553.4

  23. Slide 23: Financial highlights 1Q2016 Consolidated income statement

    Financial highlights 1Q2016 Consolidated income statement Net sales & EBITDA (TL mn) 726 2.320 EBITDA Margin EBITDA Margin 1Q15: 15.9% (adj) 1.957 2014: 17.6% 544 1Q16: 15.9% 2015: 18.8% (adj) 116 436 86 344 Net Sales EBITDA Net Sales EBITDA 1Q15 Adj 1Q16 2014 2015 Operating income & Net income (TL

  24. Slide 24: Net financial debt and repayment schedule

    Financial highlights 1Q2016 Net financial debt and repayment schedule Net financial debt (TL mn) 3.000 76% 75% 80% 61% 62% 70% 2.500 55% 55% 52% 2.501 2.439 60% 2.000 50% 1.500 1.781 40% 1.280 1.306 30% 1.000 1.270 1.138 20% 500 10% - 0% 2010 2011 2012 2013 2014 2015 1Q16 6.0 4.2 4.0 4.2 5.2 5.8 5.2

  25. Slide 25: Financial Highlights 1Q2016

    Financial Highlights 1Q2016

  26. Slide 26: Consolidated income statement

    Consolidated income statement (TL mn) 2011 2012 2013 2014 2015 Q1 2013 Q1 2014 1Q 2015 1Q 2016 Net sales 1315,4 1840,6 1786,0 1957,4 2320,0 391,5 472,1 353,4 726,0 Cost of sales -1088,0 -1604,0 -1565,9 -1710,8 -2001,6 -341,0 -423,5 -294,6 -654,8 Gross profit 227,4 236,6 220,1 246,6 318,3 50,5 48,6 5

  27. Slide 27: Consolidated balance sheet

    Consolidated balance sheet Assets (TL mn) 2012 2013 2014 2015 1Q 2013 1Q 2014 1Q 2015 1Q 2016 Cash and cash equivalents 40,6 22,3 34,2 48,5 101,6 127,6 79,1 252,8 Trade receivables net 245,9 142,3 88,7 182,6 227,2 115,0 23,8 299,8 Due from related parties and shareholders 593,9 0,0 4,4 0,0 252,4 0,0

  28. Slide 28: Consolidated statement of cash flows

    Consolidated statement of cash flows Restated (*) CASH FLOWS FROM OPERATING ACTIVITIES 1Q 2016 FY 2015 Net profi t / (l os s ) for the peri od 7,821,811 (105,907,978) Adjus tments for: Impa ct of error (7,852,430) -- Depreci a ti on a nd a morti s a ti on 47,283,053 31,732,522 Provi s i on for empl

  29. Slide 29: Appendix

    a 4 S a ENERGY Appendix Aksa Energy The Leading IPP in Turkey

  30. Slide 30: Licence Portfolio (Operational)

    Licence Portfolio (Operational) Power Plant License Owner Fuel Type Installed Capacity (MW) % Mardin-1 Aksa Energy Fuel-oil 32 Mardin-2 Rasa Elektrik Fuel-oil 33 Northern Cyprus Aksa Cyprus Fuel-oil 153 İdil (Şırnak) İdil İki Energy Fuel-oil 24 Total Fuel-Oil fired power plants 242 11% Antalya NGCC

  31. Slide 31: Ongoing Investments and Revised Licence Portfolio

    Ongoing Investments and Revised Licence Portfolio Planned Acquisitions from Kazancı Holding Additional Capacity Completion  Planned acquisition from Power Plant Investment License Owner Fuel Type (MW) Year Kazancı Holding:  Datça 12 MW WPP Datça Licenced Kazancı Holding Wind 12 2016 licence 12 Und

  32. Slide 32: Bond Issuances

    a 4 S a ENERGY Bond Issuances Aksa Energy The Leading IPP in Turkey

  33. Slide 33: Information on Issuance 2 Year Maturity Floating Rate Bonds

    Information on Issuance 2 Year Maturity Floating Rate Bonds Debt Instrument Type Coupon Bond Total issuance size for 2 year and 3 year maturity bonds is up to TL 100 million Total Nominal Issue Size (could be revised higher within limits) Issue Type To be sold to Qualified Investors Interest Type Fl

  34. Slide 34: Information on Issuance 3 Year Maturity Floating Rate Bonds

    Information on Issuance 3 Year Maturity Floating Rate Bonds Debt Instrument Type Coupon Bond Total issuance size for 2 year and 3 year maturity bonds is up to TL 100 million Total Nominal Issue Size (could be revised higher within limits) Issue Type To be sold to Qualified Investors Interest Type Fl

  35. Slide 35: Use of Proceeds, Issuance Limit and Features of Bonds

    Information on Issuance Use of Proceeds, Issuance Limit and Features of Bonds Use of Proceeds for funds Issuance Limit and Outstanding bonds ● Restructuring of the Issuer’s balance sheet via refinancing a ● First issuance of TRY 135,000,000 has been completed on portion of the foreign currency short

  36. Slide 36: Information on Issuance Pricing Methodology

    Information on Issuance Pricing Methodology 2 Year Maturity Floating Rate Bonds 3 Year Maturity Floating Rate Bonds ● Floating rate Bonds are priced over the 2 year maturity fixed coupon ● Floating rate Bonds are priced over the 3 month TRLIBOR rate. government bond issued as benchmark bond by the D

  37. Slide 37: Qualified Investors, Terms of Order Submission & Disclosure

    Information on Issuance Qualified Investors, Terms of Order Submission & Disclosure of Information Qualified Investors Terms of Order Submission ● Qualified Investors are defined in Communiqué on Principles of Investors registered to Central Registry Agency ("CRA") as Qualified Establishment and Act

  38. Slide 38: Information on Issuance Credit Rating

    Information on Issuance Credit Rating Rating Profile Credit ratings provide an opinion on the relative ability of an entity to meet financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty obligations. ● Aksa Enerji’s national long-term r

  39. Slide 39: Information on Issuance Tax Applications

    Information on Issuance Tax Applications Full Tax Payers (corporation) Full Tax Payers (real person) Limited Tax Payers (Corporation) (1) Limited Tax Payers (real person) a) Interest income derived by joint - is subject to 10% withholding. a) Interest income derived by foreign corporations in - is s

  40. Slide 40: Disclaimer

    Disclaimer Aksa Enerji 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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