Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Aksa Energy — Investor Presentation (August 2019)
52 slides from Aksa Enerji Uretim A.s's investor presentation, Aug 20, 2019
Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... INVESTOR PRESENTATION 20 AUGUST 2019 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 • Leading fully integrated energy group, active in all segments of energy business • In energy business since 1950s • Focused only on the energy sector since then • Gradually expanded into main segments of electricity & natural gas • Excellent track record in building and inte
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 30.1 mn Population 27.1 mn Population 19.1 mn GDP $ 65.6 bn GDP $ 12.1 bn GDP $ 17.1 bn GDP per capita $ 2,202 GDP per capita $ 461 GDP per capita $ 901 Installed Capacity 4,889 MW Installed Capacity 844 MW Installed Capacity 445 MW Energy Consu
Slide 7: Ghana HFO Power Plant 370 MW
Ghana HFO Power Plant 370 MW 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 5
Slide 8: Ghana
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 • 6.5 years contract start
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 HFO Power Plant – Update on 2018 Developments
Ghana HFO Power Plant – Update on 2018 Developments 90 MW extension is • 223,5 MW guaranteed capacity has been working since August 2017. To completed and the provide this guaranteed capacity, 280 MW capacity was installed. installed capacity rose to 370 MW. • Additional engines to take the capacity
Slide 11: Madagascar HFO Power Plant 1st Phase – 66 MW Completed
Madagascar HFO Power Plant 1st Phase – 66 MW Completed 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 • Established a 58.35% subsidiary in the Republic 600 of Mauritius (Aksaf Power Ltd) with a loc
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) is received • Became operational in July with 25
Slide 14: Madagascar CTA-2 HFO Power Plant – O&M Contract
Madagascar CTA-2 HFO Power Plant – O&M Contract A rehabilitation & • Madagascar has a new strategy of activating its existing sleeping assets. Out of operation agreement is these assets, a 5-year Operation & Maintenance contract for a 24MW power signed for an existing plant was secured. 24 MW HFO po
Slide 15: Mali HFO Power Plant
Mali HFO Power Plant Operational since August 2017 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 HFO power plant in the capital of Republic of Mali, Bamako • 3 year contract signed with Énergie du Mali for 200 445 the guaranteed s
Slide 17: Mali – Key Points
Mali – Key Points • € 4 mn mobilisation fee is received Negotiating with Énergie du Mali to • € 1.6 mn payment guarantee is received increase contract • Became operational at the beginning of August with 10 MW duration and size • Full commissioning (40 MW) completed in September 2017 • 30 MW guarant
Slide 18: 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 are expected to make up c.85% of EBITDA in 2019 Mali Ghana Africa 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 Hard currency TRNC and CTA-2 Power Plant, which is operated on behalf of Madagascar, denominated tariffs consist of two components. • The first component is the guaranteed purchase t
Slide 21: Overseas Operations - The Tariff Structure
Overseas Operations - The Tariff Structure • Despite potential negative impact of the changing energy demand, seasonality and electricity generation by renewable power plants, the contribution of the overseas power plants to Aksa Energy’s profitability 90 MW increase in continues to be high, as the
Slide 22: Potential International Operations
POTENTIAL INTERNATIONAL OPERATIONS
Slide 23: Potential Opportunities for 2019 & Beyond
Potential Opportunities for 2019 & Beyond Mali Senegal Chad Burkina Faso Guinea Benin Ghana Cameroon Gabon Indonesia Tanzania Angola Madagascar 19
Slide 24: Turkish Operations
TURKISH TURKISHOPERATIONS OPERATIONS
Slide 25: Natural Gas Prices vs Spot Energy Prices
MARKET HIGHLIGHTS Natural Gas Prices vs Spot Energy Prices Natural gas price tariff increased BOTAŞ NATURAL GAS TARIFF (TRY) 76% YoY in June, while average 500 1755 1700 1700 1650 1800 1550 1550 1550 1550 1550 1550 1550 1550 spot energy price increase stood at 450 27%. 400 1300 350 300 878 878 332 3
Slide 26: Turkish Operations – USD based visibility in coal fired PP in 2019
Turkish Operations – USD based visibility in coal fired PP in 2019 Bolu, TRNC, Ghana, • The regulator amended the “Purchase of Electricity from Private Companies Operating Only Domestic Coal-Fired Power Plants” for 2019 and beyond. Mali and Madagascar power plants are • TRY denominated power purchas
Slide 27: Turkish Operations
Turkish Operations Peak hour generation • Local power plants’ production in 2Q19 was 7% lower YoY since: at CCGTs along with o Bolu Göynük CFFP was in planned maintenance between April-June, one high margin coal unit at a time. fired generation o CCGT PPs were utilised at peak hours to maximise prof
Slide 28: Bolu Coal Fired PP Benefits from High Price Scheme
Turkish Operations – Bolu Coal Fired PP Benefits from High Price Scheme The YoY increase in spot energy prices improved the profitability of our local coal fired power plant, EÜAŞ PURCHASE TARIFF vs AVG SPOT PRICES (TRY) Bolu Goynuk, significantly. We sell about half of our production to the 350 spo
Slide 29: Financial & Operational Highlights 1H 2019
FINANCIAL & OPERATIONAL HIGHLIGHTS 1H 2019
Slide 30: 1H 2019 Results – Sales Breakdown (Turkey + Northern Cyprus)
FINANCIAL HIGHLIGHTS 1H 2019 Results Sales Breakdown (Turkey + Northern Cyprus) 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1H 2018 1H 2019 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern 352.182 513 350.338 739 176.518 560 177.510 814 174.622 755 174.854 701
Slide 31: 1H 2019 Results – Sales Breakdown
FINANCIAL HIGHLIGHTS 1H 2019 Results Sales Breakdown 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1H 2018 1H 2019 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET 3.226.328 226 4.068.300 273 3.058.963 273 2.988.191 297 3.577.429 275 7.004.420 205 6.565.62
Slide 32: 1H 2019 Results Snap Shot
FINANCIAL HIGHLIGHTS 1H 2019 Results Snap Shot QoQ 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1H 2018 1H 2019 YoY Change Change Installed Capacity 2.221 MW 2.221 MW 1.946 MW 1.946 MW 1.946 MW - 2.221 MW 1.946 MW -275 MW Sales Volume (GWh) 3.482 4.221 3.229 3.260 3.871 19% 7.693 7.130 -7% Net Sales (TRY
Slide 33: Rapid improvement in Net Financial Debt/EBITDA ratio
FINANCIAL HIGHLIGHTS 1H 2019 Results Rapid improvement in Net Financial Debt/EBITDA ratio EBITDA (TRY mn) NET FINANCIAL DEBT/EBITDA +150% +15% 8 7,8 402 7,3 351 6,6 306 277 6 5,6 233 217 4,4 4,4 161 4,1 4 3,6 3,3 2,8 2 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q17 2Q17 3Q17 2017 1Q18 2Q18 3Q18 2018 1Q19 2
Slide 34: Net Financial Debt – Notable Decrease in USD Terms
FINANCIAL HIGHLIGHTS 1H 2019 Results Net Financial Debt – Notable Decrease in USD Terms Aksa Energy’s net financial debt NET FINANCIAL DEBT (USD mn) decreased from USD 860 mn in YE2015, when the decision to expand to Africa was taken, to USD 736 mn in YE2017 through 15% decrease asset sales. Despite
Slide 35: Regional EBITDA Breakdown
FINANCIAL HIGHLIGHTS 1H 2019 Results Regional EBITDA Breakdown REVENUES (TRY mn) Although 69% of the revenues are generated from Turkey and 728 TRNC, African power plants generated 65% of the EBITDA in 1.585 1H2019 due to their high margin FX based sales. Turkey + Northern Cyprus Africa EBITDA (TRY
Slide 36: EBITDA Breakdown by Currency & Fuel
FINANCIAL HIGHLIGHTS 1H 2019 Results EBITDA Breakdown by Currency & Fuel EBITDA BY FX RATE Hard currency portion of the EBITDA constitutes 74% of the total in 1H2019. 26% TRY BASED HARD CURRENCY 74% EBITDA BY FUEL TYPE 9% 17% Coal PPA Natural Gas 74% 30
Slide 37: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2019 Consolidated Income Statement NET SALES & EBITDA (TRY MN) 1.158 EBITDA Margin 1.036 EBITDA Margin 2Q18: 22% 1H18: 22% 2.313 2Q19: 35% 1H19: 33% 2.058 402 752 233 450 Net Sales EBITDA Net Sales EBITDA 1H2018 1H2019 2Q2018 2Q2019 OPERATING INCOME & NET
Slide 38: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2019 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 4.000 90% 3.500 80% 3.000 85% 70% 76% 60% 2.500 67% 2.000 62% 62% 62% 50% 40% 1.500 30% 1.000 20% 500 1.781 2.501 2.744 2.777 3.692 3.780 10% - 0% 5,2 5,6 6,3 5,6 3,6 2,8 2014 2015 2
Slide 39: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY mn) 31.12.2016 31.12.2017 31.12.2018 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 Net sales 3.178.201.840 3.599.311.868 4.669.249.102 1.022.120.075 1.036.169.391 1.428.214.991 1.182.744.645 1.155.422.198 1.157.543.009 Cost of sales (2.907.157.616)
Slide 40: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Assets (TRY mn) 31.12.2016 31.12.2017 31.12.2018 31.03.2019 30.06.2019 Cash and cash equivalents 219.364.855 59.577.791 53.026.362 116.463.204 91.628.426 Trade receivables net 219.696.945 759.563.092 1.403.203.217 1.655.650.367 1.929.706.648 Due from r
Slide 41: Consolidated Statement of Cash Flow
FINANCIAL HIGHLIGHTS Consolidated Statement of Cash Flow (TRY mn) 31.12.2016 31.12.2017 31.12.2018 1Q 2018 1H2018 1Q 2019 1H2019 Net income (loss) before tax -367.623.980 290.120.538 150.478.434 48.309.727 84.701.220 108.039.568 228.629.352 Depreciation and amortisation 191.172.113 225.000.265 394.0
Slide 42: 2019 Guidance
2019 GUIDANCE
Slide 43: 2019 Guidance
FINANCIAL HIGHLIGHTS 2019 GUIDANCE 2019 EBITDA BREAKDOWN 2019E EBITDA GROWTH (mn TRY) +30% 1.339 15% 587 85% 1.033 752 1H2019A AFRICA TURKEY & N. CYPRUS 2018A 2019E REVENUES: TRY 4.835 mn 2019 guidance assumptions EBITDA: TRY 1.339 mn No new investments are foreseen in 2019 USD/TRY: 6.23 CAPEX: TRY
Slide 44: Turkish Market
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Slide 45: 1H 2019 – Key Figures
MARKET HIGHLIGHTS 1H 2019– Key Figures GENERATION BY FUEL TYPE Generation via natural gas Hydro decreased by 13 ppts YoY mostly 38% Wind due to the low spark spread. 7% Others 4% On the other hand, generation Fuel Oil from hydro made up for this Natural gas 1% decrease by increasing 15 ppts YoY 16%
Slide 46: Installed Capacity Changes by Fuel Type
MARKET HIGHLIGHTS Installed Capacity Changes by Fuel Type 1H2019 – 1H2018 CAPACITY CHANGES Fossil Renewable When new and decommissioned capacities 1.249 1.400,00 are netted off, there is an 1.200,00 841 increase of 841 MW in 1.000,00 lignite&coal, 527 MW in 800,00 466 527 600,00 wind, 466 MW in hydr
Slide 47: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption Electricity generation and consumption were flat in 1H2019. GENERATION (GWh) CONSUMPTION (GWh) 141.845 141.650 141.906 141.025 1H2018 1H2019 1H2018 1H2019 39
Slide 48: Appendix
APPENDIX
Slide 49: 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 50: Pipeline
Pipeline Power Plant Investment License Owner Fuel Type Capacity (MW) Completion Year Madagascar Greenfield Aksaf Power HFO 54 2021 onwards Total 54 41
Slide 51: 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 52: 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