Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz — Investor Presentation (August 2019)
43 slides from Aygaz Anonim Sirketi's investor presentation, August 2019
Slide 1: August 2019
August 2019
Slide 2: Content
CONTENT A Overview G Other participations B World LPG market H Financial highlights C Turkish LPG market & Aygaz I Appendix D The LPG value chain J Glossary E Participation portfolio K Disclaimer F Natural gas L Contacts
Slide 3: Aygaz overview
3 A Aygaz overview 2018 9.6 billion REVENUE 2 m tons SALES OF LPG LEADING 26%* LPG MARKET SHARE LPG * EMRA December DISTRIBUTOR of TURKEY NATURAL GAS REFINERY DIVERSIFIED PARTICIPATION PORTFOLIO IN ENERGY POWER GENERATION
Slide 4: Overview
4 > Overview SUMMARY FINANCIALS (Cons. In m TL) 2018 2017 2016 2018-2017 Change Revenue 9,554 8,469 6,749 13% EBITDA 160 352 394 -55% Net Profit 228 577 416 -60% EBITDA Margin 2% 4% 6% -2 Net Profit Margin 2% 7% 6% -5 SHAREHOLDERS (%) Volume (000 tons) 2,000 2,154 2,109 -7% As of 30/06/2019 PUBLICLY
Slide 5: Core business - LPG distribution
5 > Core business - LPG distribution Generic brand for LPG 18th largest industrial company of Turkey, as of 2018 Most preferred LPG brand in Turkey since its foundation Market leader with 3 brands AYGAZ VOLUMES (000 tons) MARKET SHARES (%) 42 35 72 47 54 933 1.025 865 907 707 42 22 777 792 759 688 7
Slide 6: World LPG market
6 B World LPG market WORLD LPG CONSUMPTION (m tons) 2017 303 2016 298 2015 285 • Fastest growing energy source after 2014 275 renewable energy 2013 268 • 300 billion USD business size worldwide 2012 257 2011 256 • Sources of LPG production; 2010 249 2009 240 61% 39% 2008 240 NATURAL GAS CRUDE OIL 20
Slide 7: World LPG consumption
7 > World LPG consumption World LPG Consumption World LPG Consumption By Sectors 2017 (%) By Regions 2017 (%) 44 43 Asia Pasific Domestic 1 28 4 15 Agriculture Chemical Africa North America 8 10 10 17 Refinery Industry S.&C. America Europe&Eurasia 9 11 Autogas Middle East WLPGA Statistical Review of
Slide 8: Prices of LPG and brent
8 > Prices of LPG and brent 140 1.200 113 1.100 120 108 1.000 900 100 977 800 894 $/barrel $/ton 80 79 700 69 64 600 58 60 56 599 500 48 32 536 400 40 368 421 378 380 300 20 321 200 SP (Algeria) Petroleum (Brent) • There is a correlation between LPG and oil price • Seasonality can also affect LPG pr
Slide 9: Turkish LPG market
9 C Turkish LPG market LPG consumption in Europe (m ton) 4.1 m tons #2 in Europe #11* in the World RUSSIA 4.5 ~90 distribution companies TURKEY 4.1 Leading 3 players in the cylinder market and first 8 players in the autogas market hold over ITALY 3.4 80% of the total market POLAND 2.5 Liberal market
Slide 10: LPG market ranking
10 > LPG market ranking 1- ITALY 1.4 m tons 2- SPAIN 1.3 m tons 3- FRANCE 1.1 m tons 4- RUSSIA 1.1 m tons 5- TURKEY 0.8 m tons THE 5th BIGGEST DOMESTIC LPG MARKET IN EUROPE 1- SOUTH KOREA 3.3 m tons 2- TURKEY 3.1 m tons 3- RUSSIA 3.1 m tons 4- POLAND 1.9 m tons 5- ITALY 1.7 m tons THE 2nd BIGGEST AU
Slide 11: ‘wi runt
‘wi runt vine ae mine
Slide 12: Cylinder market starting to stabilize
12 > Cylinder market starting to stabilize CYLINDER MARKET RATES OF CHANGE (YoY) 4% Turkish 816 821 812 market 801 2% 750 0 -2% (000 tons) 2014 2015 2016 2017 2018 -4% -6% Aygaz 342 343 342 335 -8% 315 -10% 2014 2015 2016 2017 2018 TURISH MARKET AYGAZ With the effects of the on-going natural gas con
Slide 13: Aygaz; leader in cylinder market since its foundation
13 > Aygaz; leader in cylinder market since its foundation CYLINDER MARKET SHARES • Generic brand AYGAZ 41.9% • Market maker • Largest dealer network with high sales efficiency SHV 29.5% • 60% market share in residential use Demirören Group 17.5% • Fully integrated production cycle; Cylinder Other 1
Slide 14: Slide 14
Slide 15: World's second biggest autogas market
15 > World’s second biggest autogas market RATES OF CHANGE (YoY) 14% AUTOGAS MARKET 12% 3,283 10% 3,142 3,117 8% Turkish 3,069 2,838 6% market 4% (000 tons) 2% 792 0 777 759 730 -2% Aygaz 688 -4% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 TURISH MARKET AYGAZ Autogas market that showed a stead
Slide 16: Price economy of autogas
16 > 50% Price economy of autogas 40% 30%+ 30% 20% 10% 0 -10% -20% price advantage -30% to gasoline APR 14 APR 15 APR 16 APR 17 APR 18 JAN 14 JULY 14 OCT 14 JAN 15 JULY 15 OCT 15 JAN 16 JULY 16 OCT 16 JAN 17 JULY 17 OCT 17 JAN 18 JULY 18 OCT 18 To gasoline To diesel PUMP PRICE OF AUTOGAS ACROSS THE
Slide 17: Autogas; most widely-used passenger car fuel of Turkey
17 > Autogas; most widely-used passenger car fuel of Turkey RATIO OF CARS REGISTERED TO TURKISH CAR PARK (m cars) TRAFFIC ACC. TO FUEL TYPE 4.7 4.4 4.6 4.1 4.3 4.6 3.8 4.3 37% 3.3 3.1 3.1 3.1 75% 2.9 2.9 5% 38% 2.9 15% 25% 2014 2015 2016 2017 2018 2004* 2018 GASOLINE DIESEL AUTOGAS GASOLINE DIESEL A
Slide 18: Aygaz; leader of the second biggest autogas market in the world
18 > Aygaz; leader of the second biggest autogas market in the world AUTOGAS MARKET SHARES MARKET SHARE & STATION NUMBER SHARE (%) 22.3 MARKET SHARE AYGAZ 22.2% STATION NUMBER SHARE OMV PO 12.1% 16 SHELL 11.7% 1312.1 11.7 10.5 DEMİRÖREN GROUP* 10.5% 8 9 9 6.9 6.8 5 5.1 BP 6.9% 4 4 2.8 SHV GROUP** 6.
Slide 19: Autogas car park growth
19 > Autogas car park growth ~80,000 1,000+ conversion points OEM; original equipment $500 average cost of conversion manufacturer conversions Payback in 15,000 km • Some major car manufacturers are per year providing guaranteed conversion currently AUTOGAS CONVERSIONS (m cars) 12 12.4 9.9 10.6 11.3
Slide 20: The LPG value chain
20 D The LPG value ~200 1,718 auto gas tankers stations chain 1,000,000 vehicles using Aygaz Otogaz Moving&floating Fixed storage storage capacity capacity of of 37,000 m3 178,400 m3 ~2,500 bulk gas customers 3 LPG ships 2 million belonging to tons of LPG the fleet of supply Anadoluhisarı Tankercili
Slide 21: Competitive supply chain
21 > Competitive supply chain BIG PLAYER ADVANCED MODEL #1 purchaser in Mediterranean Direct imports to 5 different locations #1 importer in Turkey Most diversified supply portfolio in Turkey #1 exporter in Turkey Diversified supplier & origins #1 storage owner in Turkey (~24% of TR) Diversified sup
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Slide 23: Participation portfolio
23 E Participation portfolio Aygaz Doğalgaz Anadoluhisarı 100% 100% EYAŞ* Akpa 50% 100% Opet-Aygaz Entek Gayrimenkul 50% 50% *EYAŞ owns 51% of the shares of TÜPRAŞ Financial Investments: Koç Finansal Hizmetler A.Ş. (1.97%), Ram Dış Ticaret A.Ş (2.5%), Tanı Pazarlama ve İletişim Hizmetleri A.Ş. (10%)
Slide 24: Natural gas
24 F Natural gas LNG SALES Transportation 13% market share, 2018 sales: and regasification 300 industrial 77 mcm customers SALES VOLUME (mcm) PIPELINE NATURAL GAS SALES 1,279 1,103 Started in 2018 sales: 961 2010 827 mcm 837 827 PROJECTS LNG & Pipeline gas import 94 92 100 105 77 2014 2015 2016 2017
Slide 25: Other participations
25 G Other participations POWER GENERATION SALES AND MARKETING Direct sale of cylinder gas and carboy TOTAL INSTALLED CAPACITY: 362 MW water throughout Turkey Kocaeli Natural Gas Fuel trade at its fuel stations Combined Cycle (NGCC): 97 MW 8 Hydro Assets: (HEPP): 265 MW STRATEGY OPET AYGAZ GAYRİMENK
Slide 26: Aygaz key takeaways
26 > Aygaz key takeaways Consistent Brand Long-term Diversifier Market Power Strategy & Portfolio Leader Builder Investor Strong Sales & Financial Logistics Network Strength STRATEGIC PRIORITIES Sustain its market leadership in LPG by; • Investing in the future with the responsibility of being the i
Slide 27: Shareholder value
27 > Shareholder value BIST Code AYGAZ STRENGTHS • Sustainable operating profitability from core business; LPG Bloomberg Code AYGAZ.TI • Resistant to economic fluctuations and crises Reuters Code AYGAZ.IS • Regular dividend payments IPO Date 13.01.1988 Free Float Rate 24.3% • Corporate governance pr
Slide 28: Financial highlights
28 H Financial highlights REVENUE (m TL) 9,554 8,469 7,061 6,420 6,749 2014 2015 2016 2017 2018 Revenue figure fluctuations are mainly due to; • FX rate changes • Commodity price changes
Slide 29: Financial highlights
29 > Financial highlights GROSS PROFIT AND GPM EBITDA AND EBITDA MARGIN 12% 11% 9% 6% 7% 5% 7% 4% 3% 2% 787 394 677 741 634 337 352 527 188 160 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 GROSS PROFIT GROSS PROFIT MARGIN EBITDA EBITDA MARGIN NET PROFIT AND NPM PROFIT MARGINS 7% 12% 7% 6% 10% 8
Slide 30: Financial highlights
30 > Financial highlights NET CASH (m TL) WORKING CAPITAL (m TL) -63 324 186 183 348 -204 2016 110 297 577 230 -263 -380 390 182 483 475 187 440 228 2014 2015 -319 -372 -471 2017 -753 -670 -560 2014 2015 2016 2018 2017 TRADE PAYABLES TRADE RECEIVABLES INVENTORY WORKING CAPITAL 2018 CURRENT RATIO RET
Slide 31: Financial highlights
31 > Financial highlights DEBT PROFILE AS OF 31/12/2018 (m TL) 12M 2018 12M 2017 ST Borrowings 79 85 TL Current portion of LT Borrowings TL Bond; 492 305 Loan; 16% LT Borrowings 830 583 69% Total Debt 1,401 973 FX Cash and cash equivalents (-) Loan; (648) (593) 15% = Net Debt 753 380 ST: Short-term
Slide 32: Appendix
32 I Appendix
Slide 33: Income statement summary
33 1 Income statement summary (m TRY) 2014 2015 2016 2017 2018 Revenue 7,061 6,420 6,749 8,469 9,554 COGS (6,534) (5,743) (5,962) (7,728) (8,920) Gross Profit 527 677 787 741 634 Operating Profit 104 250 308 265 71 Profit Before Tax 237 458 469 621 250 Net Profit 218 418 416 577 228 EBITDA 188 337 3
Slide 34: Balance sheet summary
34 2 Balance sheet summary (m TRY) 2014 2015 2016 2017 2018 Cash & Cash Eq. 161 289 568 593 648 Trade Receivables 390 483 475 577 440 Inventories 110 186 183 324 348 Inv. Acc. Under Equity Method 1,677 1,867 1,922 2,273 2,305 Prop. Plant & Eq. 585 651 658 678 687 Financial Debt (365) (551) (630) (97
Slide 35: 2019 Q2 income statement summary
35 3 2019 Q2 income statement summary FINANCIAL QUARTERLY I (YoY) Revenue 2,745 24% YoY Million TL Operating profit 54 -42% YoY Million TL EBITDA 86 -25% YoY Million TL Net Profit 121 -19% YoY Million TL
Slide 36: 2019 Q2 Aygaz LPG Sales
36 4 2019 Q2 Aygaz LPG Sales (Thousand tons) 514 550 544 446 472 236 229 274 206 241 191 214 159 182 154 12 14 10 8 11 82 87 71 69 77 cylinder bulk auto other Q2 2019 sales volumes were realized as 182 thousand tons in Autogas (-5% YoY) 77 thousand tons in Cylinder Gas (-6% YoY) EMRA, Aygaz
Slide 37: Market shares
37 5 Market shares CYLINDER AUTOGAS 41.1% As of May 2019 EMRA report, Aygaz cylinder and autogas market shares are 41.1% and 21.3% respectively. 21.3% May 2019 (41.6% and 22.7% in May 2018) 291,298 According to May 2019 EMRA report, Turkish cylinder sales volume is 291 -5.4% thousand tons and autoga
Slide 38: Subsidiaries and Affiliates
38 6 Subsidiaries and Affiliates Subsidiaries Principal Participation activity Anadoluhisarı Tankercilik A.Ş Shipping 100% Kandilli Tankercilik A.Ş. Shipping 100% Kuleli Tankercilik A.Ş. Shipping 100% Kuzguncuk Tankercilik A.Ş. Shipping 100% Akpa Day. Tük. Lpg ve Akar. Ürün. Paz. A.Ş. Marketing 100%
Slide 39: Subsidiaries and Affiliates
39 > Subsidiaries and Affiliates Affiliates Principal activity Participation Enerji Yatırımları A.Ş. Energy 20% Entek Elektrik Üretimi A.Ş. Electricity 50% Opet Aygaz Gayrimenkul A.Ş. Real Estate 50% Financial Assets Principal activity Participation Koç Finansal Hizmetler A.Ş. Finance 1.97% Ram Dış
Slide 40: Forward looking statements for 2019
40 7 Forward looking statements for 2019 • Cylinder: 295 - 310 thousand tons SALES VOLUME • Autogas: 695 - 735 thousand tons • Cylinder: 41.5% - 43.5% MARKET SHARE • Autogas: 21.4% - 22.6%
Slide 41: Glossary
41 J 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 Na
Slide 42: Disclaimer
42 K 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 varia
Slide 43: Contacts
43 L Contacts investorrelations@aygaz.com.tr ferda.erginoglu@aygaz.com.tr Ferda Erginoğlu, CFO +90 212 354 1764 sebnem.yucel@aygaz.com.tr Şebnem Yücel, Finance Manager +90 212 354 1510 selin.sanver@aygaz.com.tr Selin Sanver, Investor Relations Manager +90 212 354 1659 www.aygaz.com.tr