Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Non-Deal Roadshow (December 2019)
54 slides from Aksa Enerji Uretim A.s's roadshow presentation, Dec 2, 2019
Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... INVESTOR PRESENTATION 02 DECEMBER 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 • 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, total 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, total 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 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
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 over 332 MW out of 370 provide this guaranteed capacity, 280 MW capacity was installed. MW Installed Capacity • Additional engines to take the capacity to 370 MW were commissioned in No
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 Republic of 600 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) is 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 • € 4 mn mobilisation fee is received • € 1.6 mn payment guarantee is received Negotiating with Énergie du Mali to • Became operational at the beginning of August with 10 MW increase contract • Full commissioning (40 MW) completed in September 2017 duration and size • 30 MW guarant
Slide 18: Turkey & Africa
Turkey & Africa While continuing its investments in Turkey, 9M19 EBITDA Aksa Energy has moved toward becoming a global brand with the investments it has undertaken in Africa. Africa Turkey African PPs constitute 65% of EBITDA Mali Turkey 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 Hard currency two components: denominated tariffs 1. The first component is the guaranteed capacity
Slide 21: Overseas Operations - Ghana/Madagascar/Mali/TRNC
Overseas Operations- Ghana/Madagascar/Mali/TRNC • 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
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 Congo 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 After the sharp increase in natural gas prices due to TRY devaluation in BOTAŞ NATURAL GAS TARIFF vs ENERGY PRICES (TRY) Aug 2018, the prices have stabilised to a certain extent. However, the margin recovery in generation from 500 1755 1700
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 CFPP was in planned maintenance between April-June, one high margin coal fired unit at a time. generation helped o CCGT PPs were utilised at peak hours to maximi
Slide 28: Turkish Operations – Bolu Coal Fired PP Benefits from High Price Scheme
Turkish Operations – Bolu Coal Fired PP Benefits from High Price Scheme EÜAŞ PURCHASE TARIFF vs AVG SPOT PRICES (TRY) The YoY increase in spot energy prices improved the profitability of our local 330 317 316 coal fired power plant, Bolu Göynük, 310 significantly. We sell about half of our 293 285 2
Slide 29: Overseas Operations - Ghana/Madagascar/Mali/TRNC
Overseas Operations- Ghana/Madagascar/Mali/TRNC • 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
Slide 30: Financial & Operational Highlights 9M 2019
FINANCIAL & OPERATIONAL HIGHLIGHTS 9M 2019
Slide 31: 9M 2019 Results: Sales Breakdown (Turkey + Northern Cyprus)
FINANCIAL HIGHLIGHTS 9M 2019 Results Sales Breakdown (Turkey + Northern Cyprus) 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 9M 2018 9M 2019 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern 529.692 614 530.048 741 177.510 814 174.622 755 174.854 701 175.484 777
Slide 32: 9M 2019 Results: Sales Breakdown
FINANCIAL HIGHLIGHTS 9M 2019 Results Sales Breakdown 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 9M 2018 9M 2019 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET 4.068.300 273 3.058.963 273 2.988.191 301 3.577.429 275 4.101.233 289 11.072.719 230 10.666.
Slide 33: 9M 2019 Results Snap Shot
FINANCIAL HIGHLIGHTS 9M 2019 Results Snap Shot QoQ 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 9M 2018 9M 2019 YoY Change Change Installed Capacity 2.221 MW 1.946 MW 1.946 MW 1.946 MW 1.946 MW -- 2.221 MW 1.946 MW 275 MW Sales Volume (GWh) 4.221 3.229 3.260 3.871 4.323 12% 11.914 11.453 -4% Net Sales (T
Slide 34: Rapid improvement in Net Financial Debt/EBITDA ratio
FINANCIAL HIGHLIGHTS 9M 2019 Results Rapid improvement in Net Financial Debt/EBITDA ratio EBITDA (TRY mn) NET FINANCIAL DEBT/EBITDA 450 +117% 10 402 400 7,8 351 350 8 7,3 350 306 6,6 300 277 5,6 6 250 233 217 4,4 4,4 4,1 200 3,6 161 4 3,3 2,8 2,6 150 100 2 50 - 0 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3
Slide 35: Net Financial Debt – Notable Decrease in USD Terms
FINANCIAL HIGHLIGHTS 9M 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 860 26% decrease asset sales. 780
Slide 36: Regional EBITDA Breakdown
FINANCIAL HIGHLIGHTS 9M 2019 Results Regional EBITDA Breakdown REVENUES (TRY mn) Although 73% of the revenues 1.019 are generated from Turkey and 27% TRNC, African power plants generated 65% of the EBITDA in 2.781 9M2019 due to their high 73% margin FX based sales. Turkey + Northern Cyprus Africa EB
Slide 37: EBITDA Breakdown by Currency & Fuel
FINANCIAL HIGHLIGHTS 9M 2019 Results EBITDA Breakdown by Currency & Fuel EBITDA BY FX RATE Hard currency portion of the EBITDA constitutes 72% of the total in 9M2019. 28% TRY BASED HARD CURRENCY 72% EBITDA BY FUEL TYPE 9% 19% Coal PPA Natural Gas 72% 31
Slide 38: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Financial Highlights 9M 2019 Consolidated Income Statement NET SALES & EBITDA (TRY MN) EBITDA Margin EBITDA Margin 1.487 3.800 1.428 3Q18: 21% 3.487 9M18: 22% 3Q19: 24% 9M19: 29% 1.103 306 350 756 Net Sales EBITDA Net Sales EBITDA 3Q2018 3Q2019 9M2018 9M2019 OPERATING INCOME & N
Slide 39: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights 9M 2019 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 4.000 90% 3.500 80% 3.000 85% 70% 2.500 76% 60% 62% 62% 67% 64% 62% 50% 2.000 61% 40% 1.500 30% 1.000 20% 500 1.781 2.501 2.744 2.777 3.692 3.802 3.780 3.618 10% - 0% 5,2 5,6 6,3 5,6
Slide 40: Share Performance
Share Performance AKSA ENERGY (AKSEN TI) 6,00 Revised 3Q18 90.000.000 Aksa Energy trades on 5,19 Financials due to 80.000.000 5,00 Restated Depreciation BIST 100, BIST 50 & Figure 9M19 70.000.000 Financials 4,00 Sustainability indices 60.000.000 DAILY VOLUME PRICE (TRY) 50.000.000 3,00 3,24 2,71 40.
Slide 41: Effect of Brent Oil and FX Rate Changes on Receivables
Effect of Brent Oil and FX Rate Changes on Receivables 5,62 5,51 5,87 5,66 5,36 6,00 2.000 4,36 5,00 3,80 3,81 1.802 1.856 1.500 4,00 1.539 1.549 1.000 1.284 3,00 1.113 901 2,00 500 675 424 325 371 339 401 353 1,00 233 255 - 0,00 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q2019 Receivables (TRY mn) Brent O
Slide 42: 2019 Guidance
2019 GUIDANCE
Slide 43: 2019 Guidance
FINANCIAL HIGHLIGHTS 2019 GUIDANCE 2019 EBITDA BREAKDOWN 2019E EBITDA GROWTH (mn TRY) +30% 1.339 236 15% 1.103 9M2019A 85% 1.033 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: TR
Slide 44: Turkish Market
TURKISH MARKET
Slide 45: 11M 2019 – Key Figures
MARKET HIGHLIGHTS 11M 2019– Key Figures GENERATION BY FUEL TYPE Wind; 7% Generation via natural gas Hydro; 31% decreased by 12 ppts YoY mostly Others; 4% due to the low spark spread. Fuel Oil; 1% On the other hand, generation from hydro made up for this Natural gas; decrease by increasing 11 ppts Yo
Slide 46: Installed Capacity Changes by Fuel Type
MARKET HIGHLIGHTS Installed Capacity Changes by Fuel Type 11M2019 – 11M2018 CAPACITY CHANGES Fossil Renewable When new and decommissioned capacities 2.830 3.000 are netted off, there is an 2.500 increase of 739 MW in 2.000 lignite&coal, 624 MW in 1.500 1.097 wind, 354 MW in natural gas, 1.000 739 62
Slide 47: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption In 11M2019, electricity generation and consumption decreased by 1% respectively. GENERATION (GWh) CONSUMPTION (GWh) 267.364 267.024 265.614 264.926 11M2018 11M2019 11M2018 11M2019 39
Slide 48: Appendix
APPENDIX
Slide 49: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY mn) 31.12.2017 31.12.2018 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Net sales 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 1.486.920.923 Cost of sales (3.283.982.668) (3.
Slide 50: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Assets (TL) 31.12.2017 31.12.2018 31.03.2019 30.06.2019 30.09.2019 Cash and cash equivalents 59.577.791 53.026.362 116.463.204 91.628.426 131.910.302 Trade receivables net 759.563.092 1.403.203.217 1.655.650.367 1.928.922.870 1.988.589.860 Due from rel
Slide 51: Consolidated Statement of Cash Flow
FINANCIAL HIGHLIGHTS Consolidated Statement of Cash Flow (TRY mn) 31.12.2017 31.12.2018 31.03.2019 30.06.2019 30.09.2019 Net income (loss) before tax 290.120.538 150.478.434 108.039.568 228.629.352 349.583.759 Depreciation and amortisation 225.000.265 394.018.340 112.652.450 229.365.177 357.477.704
Slide 52: 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 53: 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 54: 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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