Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Aksa Enerji — Investor Presentation (September 2015)
37 slides from Aksa Enerji Uretim A.s's investor presentation, Sep 9, 2015
Slide 1: Aksa Enerji: The leading IPP in Turkey
Aksa Enerji The leading IPP in Turkey Investor Presentation 9 September 2015
Slide 2: Key investment highlights
Key investment highlights 1 Part of a dedicated energy group 2 Second largest Independent Power Producer (IPP) in Turkey 3 Strong exposure to growing Turkish electricity market 4 Large portfolio with 20 operational assets totalling 2,295 MW 5 Diversified pipeline of 8 projects adding 1,352 MW to our
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
Slide 4: We are the second largest IPP in Turkey with 2,295 MW installed capacity
We are the second largest IPP in Turkey with 2,295 MW installed capacity IPPs by Installed Capacity 2.560 2.295 1.665 1.759 1.490 (MW) 1.288 952 854 486 365 Enerjisa Aksa Enerji İÇDAŞ Limak Eren Enerji Akenerji Cengiz Zorlu Enerji Bis Enerji AES Entek Source: Information obtained from each IPP’s ann
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) 500 TWh High CAGR – High Demand: 7.3% MWh/pa 450 431 Demand Scenario 9 400 8 350 Low 7 255 362 Demand 300 Scenario 6 250 CAGR – Low Demand: 5.0% CAGR: 5
Slide 6: We have 20 assets under operation across Turkey
We have 20 assets under operation across Turkey 1 19 KIYIKÖY ÇORUM-İNCESU 27 MW 15 MW 2 18 AYVACIK AYRES SAMSUN 5 MW 131 MW BOLU-GÖYNÜK 20 AKKÖY 17 135 MW 13 MW 3 BALIKESİR KAPIDAĞ 24 MW 16 VAN 4 BALIKESIR ŞAMLI 115 MW 114 MW Total 2,295 MW 5 MANISA KARAKURT 11 MW 6 MANISA 115 MW 15 SİİRT 24 MW 7 AN
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 corridor with high load factors One of the most efficient CCGT plants in Turkey, with 7 farms, with a total capacity a capacity of 1,150 MW with
Slide 8: We have a diversified pipeline of 8 projects adding 1,352 MW to our portfolio
We have a diversified pipeline of 8 projects adding 1,352 MW to our portfolio Current Installed Total Installed Pipeline Capacity Capacity 3,647 MW 1,352 MW 1,053 MW 85 MW Hydro 147 MW 175 MW Wind 29 MW Lignite 135 MW 288 MW Natural Gas 1,041 MW 270 MW 214 MW 2,295 MW 2.681 MW 4 3 1 8 (1) 1 Hydro 2
Slide 9: Cost Reduction- Increasing share of Renewable & Local Resources
Cost Reduction- Increasing share of Renewable & Local Resources New Renewable Capacities New Renewable Capacities New Local Resource Capacity ► A total of 88MW has been added to (2014) (2015E) (2015E) our total installed capacity in 2014, 64MW of which comes from 30 18 300 renewables. 16 17 25 250 2
Slide 10: We target to create significant cost improvement with our renewables and lignite fired PP pipeline
We target to create significant cost improvement with our renewables and lignite fired PP pipeline Targeted Capacity Increases in Renewables & Lignite (MW) MW 10% 12% 26% MWh (+) 62 MW Hydro 700 4000 (+) 29 MW Wind 600 62 3500 (+) 20 MW Wind (already oper.) (+) 85 MW Hydro 13 270 3000 500 +32% (+) 1
Slide 11: Company Highlights - Cost Structure (TL)
Company Highlights - Cost Structure (TL) Cost Structure vs. Sales Price (1H15) Improving Lower Cost Output % of TL/MWh 179* Renewables 19% 16% &Sourcing 320 Average Cost: 136 5,768 GWh 280 4,756 GWh 240 217 673 3.113 200 32 229 179 160 25 125 120 604 96 80 3.502 185 329 80 154 125 96 1.367 40 28 80
Slide 12: Company Highlights - Sales mix and prices (TL)
Company Highlights - Sales mix and prices (TL) Capacity 44% 68% (adj) Utilization 10 TWh 9 Balancing Market Northern Cyprus 8 Wholesale Bilateral 7 Retail Bilateral 5.8 TWh 6 Sales 4.2 TWh 5 to BSM 1.6 BSM 28% 4 3 Total 4.2 3.63.6 Contracted 72% 86% BSM Contracted 2 Sales 1 14% Contracted 0.60.6 0 2
Slide 13: We are 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 67x # of Bilateral 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Customers (2) 245 61
Slide 14: We have successfully increased efficiencies of our CCGT plants and cut our 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/ TL/MWh MW 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 0,0 0,5
Slide 15: Aksa Enerji- Business Update
Aksa Enerji- Business Update ► We have applied for 100MW of solar capacity and are waiting for approval. The investment is expected to start in 2017. ►Bolu Göynük’s 1st phase (135 MW) became operational in July 2015. 2nd phase (135 MW) is expected to be operational in October. ►Sebenoba WPP’s extent
Slide 16: 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 370MW HFO plant, electricity generation and the guaranteed sale of this energy ► Approved by the parliament of Republic of Ghana ►Can be extended before the
Slide 17: 2015 Guidance – Financials
2015 Guidance – Financials ►Sales: 12.7 TWh (70% bilateral and 30% BSM sales) ►Revenues: TRY 2.5 bn (adjusted) ►Average Aksa Price: TRY180-185 (vs expected average market price of TRY140) ►CAPEX: USD 250-280mn (including Ghana) ►EBITDA: TRY 420-430mn 16
Slide 18: Tailored strategy to create sound and secure profitability
Tailored strategy to create sound and secure profitability Evolution of Capacity and Sales Mix Total Contracted (1) Total Contracted (1) 14% 3,647 MW 23% Shifted strategy Fortifying baseload Lignite to become baseload strategy & building cost Hydro producer 77% effective pipeline Wind Total Spot (2)
Slide 19: The Sector
The Sector
Slide 20: Market Highlights- Generation & Consumption
Market Highlights- Generation & Consumption ►Electricity generation and consumption both increased by 3% YoY in 1H15. Consumption (GWh) Generation (GWh) 126.967 124.884 125.000 123.857 125.000 121.429 119.365 120.000 120.000 116.280 115.000 115.000 110.000 110.000 105.000 105.000 100.000 100.000 1H
Slide 21: Market Highlights - Installed Capacity
Market Highlights - Installed Capacity ►Total installed capacity in Turkey has MW Capacity Changes (2014 vs 1H15) Fossil Renewable increased by 2,087 MW Ytd to 71,604 MW in 1.416 1H2015, representing an increase of 3%. 1.500,0 1.250,0 ►The majority of the new capacity came from 1.000,0 hydro (1,416M
Slide 22: Market Update- Generation by Type
Market Update- Generation by Type ► Source of electricity generation in 1H15 changed Generation by type 1H14 vs 1H15 due to heavy rain and snow fall this year, with hydros producing 28% of the total generation, as opposed to Wind Fuel-Oil 18% in 1H14. 4% 3% Lignite & Coal ► The change is even more d
Slide 23: Market Update- Changes in Market and Trade Volumes
Market Update- Changes in Market and Trade Volumes ►The OTC market is a new platform allowing electricity producers to buy and sell via bilateral agreements amongst them. This is has allowed the production companies a new «bilateral sales» concept in addition to bilateral sales to end users. ►In 201
Slide 24: 1H 2015
1H 2015
Slide 25: 1H 2015 Results - Snap Shot
1H 2015 Results - Snap Shot * YoY YoY Adjusted Actual Adjusted YoY Q2 2013 Q2 2014 Q2 2015 Change 1H 2013 1H 2014 1H 2015 Change Q1 2015 1H 2014 1H 2015 Change Installed Capacity (MW) 2.048 2.066 2.160 94 MW 2.048 2.066 2.160 94 MW 2.151 2.066 2.160 94 MW Sales Volume (GWh) 2.174 2.298 2.755 20% 4.1
Slide 26: 1H 2015 Results - Adjusted
1H 2015 Results - Adjusted * 1Q 2015 2Q 2015 1H 2015 MWh TL/MWh MWh TL/MWh MWh TL/MWh Bilateral Agreements (end user) 204.998 171,52 37.305 169,83 242.302 171,26 Northern Cyprus 170.814 261,78 168.578 295,81 339.393 278,68 Renewable Market (BSM Renewable) 99.740 168,52 104.792 173,62 204.531 171,13
Slide 27: Financial highlights 1H 2015 Consolidated income statement
Financial highlights 1H 2015 Consolidated income statement Net sales & EBITDA (TL mn) EBITDA Margin 910 EBITDA Margin 503 856 2Q14: 12.5% 1H14: 14.0% 438 2Q15: 28.1% 1H15: 21.8% (Adj.) 141 228 55 128 Net Sales EBITDA Net Sales EBITDA 2Q14 2Q15 1H14 1H15 Operating income & Net income (TL mn) 109 163
Slide 28: Financial highlights 1H 2015 Net financial debt and repayment schedule
Financial highlights 1H 2015 Net financial debt and repayment schedule Net financial debt (TL mn) 2.500 80% 68% 61% 62% 70% 2.000 2.265 55% 55% 60% 52% 1.500 1.781 50% 40% 1.270 1.280 1.306 1.000 1.138 30% 20% 500 10% - 0% 2010 2011 2012 2013 2014 1H15 6.0 4.2 4.0 4.2 5.2 5.1 Net Financial Debt Leve
Slide 29: Financial Highlights 1H 2015
Financial Highlights 1H 2015
Slide 30: Consolidated income statement
Consolidated income statement (TL mn) 2011 2012 2013 2014 1Q 2015 2Q 2015 1H 2014 1H 2015 Net sales 1315,4 1840,6 1786,0 1957,4 353,4 502,9 910,4 856,4 Cost of sales -1088,0 -1604,0 -1565,9 -1710,8 -295,4 -383,4 -831,5 -678,8 Gross profit 227,4 236,6 220,1 246,6 58,0 119,6 78,8 177,6 Gross profit ma
Slide 31: Consolidated balance sheet
Consolidated balance sheet (TL mn) Assets 2012 2013 2014 1Q 2013 1Q 2014 1Q 2015 1H 2013 1H 2014 1H 2015 Cash and cash equivalents 40,6 22,3 34,2 101,6 127,6 79,1 29,1 19,6 31,4 Trade receivables net 245,9 142,3 88,7 227,2 115,0 23,8 284,8 133,7 52,1 Due from related parties and shareholders 593,9 0
Slide 32: Consolidated statement of cash flows
Consolidated statement of cash flows (TLmn) 2010 2011 2012 2013 2014 1H 2013 1H 2014 1H 2015 Net income (loss) before tax 84,7 -116,5 226,5 -156,1 26,6 -51,8 37,6 -72,0 Depreciation and amortisation 71,7 92,5 105,3 111,8 121,5 52,5 59,2 65,5 Other adjustments 14,7 231,2 -53,1 193,9 82,0 83,9 -7,7 19
Slide 33: Appendix
Appendix
Slide 34: Operating (Current)
Operating (Current) 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 120 İdil (Şırnak) İdil İki Energy Fuel-oil 24 Siirt Siirt Akköy Fuel-oil 24 Total Fuel-Oil fired power plants 233
Slide 35: Ongoing Investments and Revised Licence Portfolio
Ongoing Investments and Revised Licence Portfolio Planned Acquisitions from Kazancı Holding Planned acquisition from Kazancı Power Plant Investment License Owner Fuel Type Additional Capacity (MW) Completion Year Holding: Datça Licenced Kazancı Holding Wind 12 2015 Datça 12 MW WPP licence 12 Und
Slide 36: Turkish power market
Turkish power market Installed Capacity by Fuel Annual Installed Capacity Increases GW CAGR GW 23.2 80 8.8% 18 69.5 70 16 64.0 57.1 14 11.5 60 52.9 52% 40% 27,7 12.6% 49.5 12 50 44.8 25,0 41.8 22,0 10 34% 19,0 6.8 40 17,2 8 14,2 15,4 4.7 4.3 30 6 3.4 11.7 2.9 6.7% 4 3.0 48% 20 39,0 41,8 1,8 32,3 33,
Slide 37: Contact- Investor Relations
Contact- Investor Relations Özlem McCann Head of IR Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Selvi Çıkmazı No:10 Kavacık Beykoz, Istanbul 36