Slide 1: AYGAZ Investor Presentation
AYGAZ Investor Presentation May 2012
Slide 2: Table of Contents
Table of Contents Aygaz Overview LPG from A to Z = AygaZ Aygaz as an Energy Player Strategies and Key Takeaways Financial Highlights Appendix Summary Financial Statements 1
Slide 3: AYGAZ; A Well Diversified Energy Holding
AYGAZ; A Well Diversified Energy Holding •Leader in its core business: Fully integrated LPG services • #1 in Turkey, #5 in Europe • Market leader since foundation • 28% market share as Aygaz Group • 1.7 m tons sales – 2011 • $3.3 b revenue - 2011 • 7th in top industrial enterprises of TR •Diversifie
Slide 4: Keeping its solid performance
Keeping its solid performance Strong financials; (Cons. in m$) 2011 2010 2009 YoYchange Revenue 3,267 3,105 2,431 5% EBITDA 140 204 252 -31% EBITDA Margin 4% 10% 10% -6 Net Profit 227 160 203 -42% Net Profit Margin 7% 5% 8% 2 Volume (000 tons) 1,660 1,604 1,574 3% Outstanding cash generation abilit
Slide 5: LPG from A to Z
AYGAZ LPG from Ato Z AygaZ ft eal On the road In your home For business
Slide 6: LPG consumption is increasing in the world
LPG consumption is increasing in the world 300 World LPG consumption 233 241 245 272 • Mixtures of hydrocarbons in 250 199 215 219 which butane or propane are predominant (m tons) 200 • LPG market is supply oriented 150 100 50 • Supply is secure as LPG is 0 2000 2005 2006 2007 2008 2009 2012 E extra
Slide 7: Turkish LPG Market is evolving
Turkish LPG Market is evolving Turkish LPG market •3.7 m tons, #2 in Europe 71% •71 distribution companies 38% •Serving; 10 m houses 1,387 (000) tons 2,640 3 m cars 1,803 570 979 122 •Liberal market with regulatory body-EMRA 26% 16% 46% 3% LPG Consumption in Europe 2010 2004 2011 Evolving from cylin
Slide 8: Aygaz Volumes and Market Shares
Aygaz Volumes and Market Shares Other; 22% total Other; Aygaz; 23% 18% auto BP gaz; cylinder Aygaz; 5% 40% Akpet; 4% Total gaz; Milangaz; 4% POAŞ; 15% 15% BP gaz; 6% İpragaz; Shell gaz; İpragaz; 6% Milangaz; 11% 23% 8% Aygaz volumes 497 554 620 404 294 (000) tons 460 497 550 578 604 74 61 91 59 60 5
Slide 9: Turkish autogas market; growth story
Turkish autogas market; growth story 3,0 2.6 m tons, #2 in the world TR Autogas Volumes 2,5 Fuel distributors are main players 2,0 30% price advantage to gasoline (m ton) 1,5 3 m cars in Turkey -2011E 1,0 ~40% of passenger car park 0,5 9,300+ autogas stations - 2011 0,0 Source: AYGAZ Pri
Slide 10: Adaptation to change as market leader
Adaptation to change as market leader Long-term strategy builder 30% Market share vs number of 24% Opet partnership 25% stations share LPG is core business unlike fuel 20% 15% 14% distributors 10% Pioneering R&D and innovation 5% Brand power cultivated over 50 years 0% Highest efficiency
Slide 11: Autogas market dynamics
Autogas market dynamics Conversion OEM 300,000+ conversions per year Guaranteed conversion provided by 12 car manufacturers (34% passenger 1,000+ conversion points car market share) including: $700 average cost Pay back in 15,000 km * SMMT: The Society of Motor manufacturers & Traders 3.00
Slide 12: Turkish Cylinder market; always here
Turkish Cylinder market; always here Fragmented market; 71 players Contraction slowing down Potential growth in rural areas Other; 18% Conventional areas of use Residential (heating, bathroom, cooking) BP gaz; Aygaz; 40% Commercial 5% Camping Milangaz; Market New areas of use 15% sha
Slide 13: Unique expertise in cylinder market
Unique expertise in cylinder market Strong penetration 12,300+ points of sale Different brands for different segments Brand power 60% share in residential market Market maker CRM activities Innovative marketing approach Fully integrated production cycle; Gebze Plant Cylinders, ga
Slide 14: Cylinder product family
Cylinder product family Residential Camping bathroom cooking Barbecue Outside heating heating 12
Slide 15: Bulk LPG
Bulk LPG Where natural gas Petrochemical sector started infrastructure is infeasible using LPG in Turkey Residential Aygaz became first and Commercial - Industrial only seller to the sector 13
Slide 16: Strong distribution & transportation network
Strong distribution & transportation network 2,459 cylinder dealers/market total 12,000+ 1,341 autogas stations/market total 9,300+ 5,000+ service trucks 300 tanker trucks 15,000+ employees (Aygaz+dealers) 2011 figures 14
Slide 17: Incomparable brand value
Incomparable brand value Most preferred LPG brand in Turkey since its foundation – 50 years = LPG in Turkey Award for Being a Company Committed to Consumer Satisfaction 2010 byTurkish Ministry of Industry Best Brands 2010 by GFK Best Brand in LPG sector Best Brands 2010 by KalDer Best Br
Slide 18: The LPG value chain
The LPG value chain Fixed storage Gebze Facility Export of cylinders and gas devices to GAKoe Supplying 1.7 million tons of LPG belonging to the fleet of Anadoluhisani Tankercilik Moving storage capacity of 56,000 m%, which covers 60% of Turkey 206 cylinder vehicles . Delivery of cylinder gas to 100
Slide 19: Smart solutions for supply
Smart solutions for supply Flexibility creates added value Diversification – supplier portfolio Primary access to supply info & market dynamics Turkish LPG Supply 2011 Tüpraş production Tüpraş 19% Other import imports 2% 46% Aygaz import 33% Source: AYGAZ 17
Slide 20: Utilization of geographical advantage
Utilization of geographical advantage 2011 % of TR supply % of Aygaz supply 23% 11% 45% 43% 4% MED 2% 4% 7% 7% 6% 17% 31% 18
Slide 21: Sole fleet operator
Sole fleet operator Reduces logistics costs Gives flexibility in sourcing and inventory management Beylerbeyi Anadoluhisarı Kuzguncuk Provides competitive Kandilli advantage for Black Sea Kuleli supply Total capacity: 16,500 tons* *2011 figure including C&O 19
Slide 22: Effective logistics infrastructure
Effective logistics infrastructure 2011 170,000 cbm fixed storage - 30% of TR 1,110,000 tons filling capacity 56,000 cbm moving storage - 60% of TR 26 plants all over Turkey Sea Terminal Filling Facility Cylinder Distribution Point Factory 20
Slide 23: High logistics competency
High logistics competency 3 different types of inventory management LPG Mix, Autogas, Propane Direct import to 5 different locations Operational excellence in primary transportation Best inventory turnover globally Inventory Turnover 22,5 12,2 11 10 9,5 9,5 1,7 Aygaz Lavera İpragaz Milanga
Slide 24: Aygaz Key Takeaways
Aygaz Key Takeaways Financial Strength Brand Power Long- term Strategy Builder Consistent Market Diversifier & Leader Portfolio Investor Strong Sales & Logistics Network 22
Slide 25: Portfolio Architecture
Portfolio Architecture LPGDC 24% 51% 25% 10% 25% 100% 99% 100% 100% Anadoluhisarı Kuzguncuk Kandilli Kuleli 23
Slide 26: LNG Distribution and Pipeline Natural Gas
LNG Distribution • Transportation and regasification • 250 industrial customers, 20% market share • 2012 planned sales : 130 mcm • Total natural gas market: 48.5 bcm; LNG market: 0.7 bcm Pipeline Natural Gas • Started in 2010; Sales: 66 mcm • 2011 sales: 220 mcm Strategies • LNG import (near term) •
Slide 27: Entek
Entek Capacity - 305MW NGCC • İzmit : 160MW • Bursa : 143MW • Sales composition : 52% PMUM & 48% trade & direct customers Production and Sales - 2011 • Electricity prod. : 1.632 Gwh Energy sales : 2.362 Gwh • Steam prod. : 128 Gwh Revenue : 353 m TL 157 Kocaeli Strategies • Aygaz has signed a partne
Slide 28: Our priorities
Our priorities Sustain LPG market leadership through Product differentiation and innovation for autogas Further penetration through new autogas stations Growth prospects for cylinder in rural Turkey Geographical diversification in neighbouring countries Offset impact of diminishing bulk
Slide 29: Creating shareholder value
Creating shareholder value 27
Slide 30: Financial Highlights
Financial Highlights Net sales (m$) Gross Profit(m$) and GPM* 16% 400 2011 3.267 14% 15% 350 13% 13% 12% 300 2010 3.105 10% 11% 250 8% 9% 200 2009 2.431 368 358 334 6% 312 286 150 4% 100 2008 2.768 2% 50 2007 2.451 0% 0 2007 2008 2009 2010 2011 EBITDA(m$) and EBITDA Margin* Net Profit(m$) and NPM* 1
Slide 31: Quarterly Financials
Quarterly Financials Net Sales(m$) Gross Profit(m$) and GPM* 896 871 14% 120 813 798 797 800 778 704 713 12% 100 10% 80 8% 60 6% 4% 40 2% 20 0% 0 EBITDA(m$) and EBITDA Margin* Net Profit(m$) and NPM* 8% 70 25% 200 7% 60 6% 20% 150 50 5% 15% 40 4% 100 30 10% 3% 2% 20 50 5% 1% 10 0% 0 0% 0 * bars: $ f
Slide 32: Financial Highlights
Financial Highlights Equity (m$) and Debt Ratio* Net Cash (m$) 132 35% 1.600 100 30% 1.400 25% 1.200 1.000 20% 800 2007 2008 2009 2010 2011 15% (28) (18) 600 10% 400 5% 200 0% 0 2007 2008 2009 2010 2011 (198) * bars: $ figures & lines: % figures Working Capital Dividend Payout 400 116% 200 166 136 1
Slide 33: Contacts
Contacts investor@aygaz.com.tr Gökhan Tezel, CFO E-mail: gokhan.tezel@aygaz.com.tr Phone: +90 212 354 1733 Mehmet Özkan, Finance Manager E-mail: mehmet.ozkan@aygaz.com.tr Phone: +90 212 354 1657 Selin Sanver, Investor Relations Manager E-mail: selin.sanver@aygaz.com.tr Phone: +90 212 354 1659 www.ay
Slide 34: Disclaimer
Disclaimer This presentation 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 statements are reasonable, they may be affected by a variety of variables and c
Slide 35: Appendix
Appendix
Slide 36: Income Statement Summary
Income Statement Summary (m USD) 2007 2008 2009 2010 2011 Net Sales 2,451 2,768 2,431 3,105 3,267 COGS (2,140) (2,400) (2,073) (2,770) (2,981) Gross Profit 312 368 358 334 286 Operating Profit 128 189 189 145 89 Profit Before Tax 317 49 242 189 251 Net Profit 339 20 203 160 227 EBITDA 200 261 252 20
Slide 37: Balance Sheet Summary
Balance Sheet Summary (m USD) 2007 2008 2009 2010 2011 Cash & Cash Eq. 83 268 271 174 133 Trade Receivables 224 175 224 176 157 Inventories 103 56 54 105 98 Participations 910 624 669 783 663 Prop. Plant & Eq. 610 444 472 316 300 Financial Debt (281) (296) (289) (74) (1) Trade Payable 191 208 (111)