Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Investor Presentation (September 2020)
56 slides from Aksa Enerji Uretim A.s's investor presentation, Sep 9, 2020
Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... INVESTOR PRESENTATION 9 SEPTEMBER 2020 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: Assets under operation across Turkey and Northern Cyprus
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 *The electricity generation operations have bee
Slide 4: Assets under operation across Africa
4 assets under operation AFRICA across Africa TOTAL 3 power plants, owned by Aksa Energy, are operational since 2017. 476 MW* Madagascar’s refurbished 24 MW * Does not include CTA-2 power plant is being operated since end of 2018. Ghana HFO Power Plant became operational at the end of March 2017 wit
Slide 5: International Expansion
INTERNATIONAL EXPANSION
Slide 6: Aksa Energy in Africa
Aksa Energy in Africa Ghana Madagascar Mali Population 30.4 mn Population 26.9 mn Population 19.7 mn GDP $ 66,9 bn GDP $ 14,08 bn GDP $ 17,5 bn GDP per capita $ 2,200 GDP per capita $ 1,91 GDP per capita $ 1.143 Installed Capacity 5,043 MW Installed Capacity 844 MW Installed Capacity 630 MW Energy C
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. 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 Republic of 4.000 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 HFO Power Plant
Ghana HFO Power Plant Guaranteed capacity • 223,5 MW guaranteed capacity has been working since August 2017. To provide charge over 332 MW out this guaranteed capacity, 280 MW capacity was installed. of 370 MW installed • Additional engines to take the capacity to 370 MW were commissioned in capacit
Slide 11: Madagascar HFO Power Plant 66 MW
Madagascar HFO 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 600 Republic of 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) was 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 a assets, a 5-year Operation & Maintenance contract for a 24 MW power plant was sleeping asset secured. • Rehabilitation of the power plant
Slide 15: Mali HFO Power Plant
Mali HFO 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 200 630 the guaranteed sale
Slide 17: Mali – Key Points
Mali – Key Points Negotiating with • € 4 mn mobilisation fee is received Énergie du Mali to • € 1.6 mn payment guarantee is received increase contract duration and size. • Became operational at the beginning of August with 10 MW • Full commissioning (40 MW) completed in September 2017 • 30 MW guaran
Slide 18: Overseas Operations
OVERSEAS OPERATIONS
Slide 19: Overseas Operations - Turkey & Africa
Overseas Operations - Turkey & Africa While continuing its investments in Turkey, 1H2020 EBITDA Aksa Energy has moved toward becoming a global brand with the investments it has undertaken in Africa. Turkey Africa+Northern Turkey Cyprus PPs constitute 80% of EBITDA Africa Mali & TRNC Ghana Madagascar
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 two components: Hard currency denominated tariffs o The first component is the guaranteed capacity c
Slide 21: Overseas Operations - Ghana/Madagascar/Mali/TRNC
Overseas Operations- Ghana/Madagascar/Mali/TRNC Despite the decrease in • Generation volume in Africa was down by 10% YoY due to heavy rainy season in generation, overseas Ghana. PPs continued to generate high revenues from guaranteed hard • Generation at TRNC Power Plant was at the same level YoY.
Slide 22: Overseas Operations - New Contract in Uzbekistan
Overseas Operations- New Contract in Uzbekistan • 25 year power purchase agreement (PPA) Aksa Energy signed a 25 • Signed with the Ministry of Energy of Uzbekistan year-PPA with the • Guaranteed capacity payment set in USD Ministry of Energy of Uzbekistan pertaining to • 240 MW natural gas combined
Slide 23: Potential International Operations
POTENTIAL INTERNATIONAL OPERATIONS
Slide 24: Potential Opportunities for 2020 & Beyond
Potential Opportunities for 2020 & Beyond Uzbekistan Mali Senegal Chad Burkina Faso Guinea Benin Ghana Cameroon Gabon Congo Tanzania Angola Madagascar 20
Slide 25: Turkish Operations
TURKISH TURKISHOPERATIONS OPERATIONS
Slide 26: Natural Gas Prices vs Spot Energy Prices
MARKET HIGHLIGHTS Natural Gas Prices vs Spot Energy Prices In 1H20, BOTAŞ natural gas tariff BOTAŞ NATURAL GAS TARIFF vs ENERGY PRICES (TRY) rose by 3.2% YoY while average spot 500 1800 energy prices increased by 12% due 450 1650 1650 to the increase in cost of natural gas 400 1550 1550 1550 1550 15
Slide 27: Turkish Operations – USD Based Visibility in Coal Fired PP
Turkish Operations – USD Based Visibility in Coal Fired PP • The regulator amended the “Purchase of Electricity from Private Companies Bolu, TRNC, Ghana, Operating Only Domestic Coal-Fired Power Plants” for 2020 and beyond. Mali and Madagascar power • TRY denominated power purchases of EUAS are part
Slide 28: Turkish Operations - Profitability Before Volume
Turkish Operations- Profitability Before Volume High margin coal fired • Local power plants’ production in 1H2020 was 40% lower YoY. business along with Production of Bolu Göynük CFPP rose by 8% YoY as the PP was undergoing peak hour generation at routine major maintenance last year. CCGTs supported
Slide 29: Bolu Coal Fired PP Benefits from High Price Scheme
Turkish Operations – Bolu Coal Fired PP Benefits from High Price Scheme 8% YoY increase in spot energy prices on a quarterly basis improved the profitability of our EÜAŞ PURCHASE TARIFF vs AVG SPOT PRICES (TRY) local coal fired power plant, Bolu 400 PP significantly. We sell about half 350 of our pr
Slide 30: Payment Received from Asset Sale in 2017
Turkish Operations - Payment Received from Asset Sale in 2017 • $ 15,185,249 of the balance remaining from the sale of Kıyıköy Wind Power $15.2mn collected Plant, which was sold to Borusan in 2017, has been received. from Borusan • Borusan has received permits for 18 of the 20 turbines for the plann
Slide 31: Financial & Operational Highlights 1H 2020
FINANCIAL & OPERATIONAL HIGHLIGHTS 1H 2020
Slide 32: 1H2020 Results Sales Breakdown (Turkey + Northern Cyprus)
FINANCIAL HIGHLIGHTS 1H2020 Results Sales Breakdown (Turkey + Northern Cyprus) 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 1H 2019 1H 2020 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern 175.484 777 179.710 743 175.800 747 174.866 820 176.197 677 350.338 739
Slide 33: 1H2020 Results Sales Breakdown
FINANCIAL HIGHLIGHTS 1H2020 Results Sales Breakdown 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 1H 2019 1H 2020 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET 3.577.429 275 4.101.233 289 4.817.096 287 4.750.117 325 5.421.063 286 6.565.620 285 10.171.18
Slide 34: 1H2020 Results Snap Shot
FINANCIAL HIGHLIGHTS 1H2020 Results Snap Shot QoQ 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 1H 2019 1H 2020 YoY Change Change Installed Capacity 1.946 MW 1.946 MW 1.946 MW 1.946 MW 1.946 MW - 1.946 MW 1.946 MW - Sales Volume (GWh) 3.871 4.323 5.058 5.092 5.589 10% 7.130 10.680 50% Net Sales (TRY mn) 1
Slide 35: Industry Low Net Financial Debt/EBITDA Ratio Maintained
FINANCIAL HIGHLIGHTS 1H2020 Results Industry Low Net Financial Debt/EBITDA Ratio Maintained EBITDA (TRY mn) NET FINANCIAL DEBT/EBITDA 10,0 450 402 7,8 400 371 8,0 7,3 364 351 350 350 337 6,6 306 300 6,0 5,6 277 250 233 4,4 4,4 217 4,1 200 4,0 3,6 3,3 2,8 150 2,6 2,1 2,1 2,1 100 2,0 50 0 0,0 1Q18 2Q1
Slide 36: Net Financial Debt
FINANCIAL HIGHLIGHTS 1H2020 Results Net Financial Debt Aksa Energy’s net financial debt NET FINANCIAL DEBT (USD mn) decreased from $860 mn in YE2015, when the decision to expand to Africa was taken, to $736 mn in YE2017 through asset sales. 900 800 700 860 780 736 Net financial debt further 600 702
Slide 37: Regional EBITDA Breakdown
FINANCIAL HIGHLIGHTS 1H2020 Results Regional EBITDA Breakdown REVENUES (TRY mn) Although 79% of the revenues 728 are generated from Turkey and 21% Turkey + Northern TRNC, African power plants Cyprus generated 67% of the EBITDA in 2.739 Africa 1H20 due to their high margin 79% FX based sales & capaci
Slide 38: EBITDA Breakdown by Currency & Fuel
FINANCIAL HIGHLIGHTS 1H2020 Results EBITDA Breakdown by Currency & Fuel Hard currency portion of the EBITDA BY FX RATE EBITDA constitutes 80% of the total in 1H20. 20% Due to low spark spreads TRY BASED because of increased costs, HARD CURRENCY EBITDA contribution of CCGTs 80% remained the same QoQ
Slide 39: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Financial Highlights 1H2020 Consolidated Income Statement NET SALES & EBITDA (TRY MN) 3.467 1.620 2.313 1.158 752 709 402 337 Net Sales EBITDA Net Sales EBITDA 1H2019 1H2020 2Q2019 2Q2020 OPERATING INCOME & NET INCOME (TRY MN) 523 285 505 238 184 291 229 121 Operating Income Net
Slide 40: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights 1H2020 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 4.000 88% 100% 3.500 76% 90% 3.000 64% 63% 67% 80% 70% 2.500 60% 45% 45% 41% 2.000 50% 1.500 40% 30% 1.000 20% 500 1.781 2.501 2.744 2.777 3.692 3.142 3.195 3.022 10% - 0% 5,2 5,6 6,3
Slide 41: Share Performance
Share Performance AKSA ENERGY (AKSEN TI) Aksa Energy trades 7,00 AKSA ENERGY (AKSEN TI) 60.000.000 on BIST 100 & 6,00 Daily Volume (TRY) Price (TRY) 50.000.000 Sustainability indices 5,00 40.000.000 DAILY VOLUME PRICE (TRY) 4,00 30.000.000 3,00 20.000.000 2,00 1,00 10.000.000 0,00 0 09 September 202
Slide 42: Effect of Brent Oil and FX Rate Changes on Receivables
Effect of Brent Oil and FX Rate Changes on Receivables 2.500 6,52 6,84 7,00 5,87 5,94 2.492 5,62 5,51 5,66 6,00 5,36 2.000 1.989 2.069 4,36 1.929 5,00 1.863 1.500 3,80 3,81 1.656 4,00 1.539 1.284 3,00 1.000 1.113 901 2,00 500 675 424 325 371 339 401 353 375 334 1,00 233 255 220 - 0,00 4Q17 1Q18 2Q18
Slide 43: Guidance
3, 2020 GUIDANCE
Slide 44: 2020 Guidance
FINANCIAL HIGHLIGHTS 2020 GUIDANCE REVENUES: TRY 5.259 mn 2020 EBITDA BREAKDOWN EBITDA: TRY 1.445 mn CAPEX: TRY 155 mn African power plants are forecast to account for 72% of the projected EBITDA for 2020. Turkey & In 2020, Bolu Goynuk Thermal Energy Power Plant and Ali TRNC Metin Kazancı Natural Ga
Slide 45: Turkish Market
TURKISH MARKET
Slide 46: 1H2020 Key Figures - The Sector
MARKET HIGHLIGHTS 1H2020 Key Figures - The Sector GENERATION BY FUEL TYPE 1H19 GENERATION BY FUEL TYPE 1H20 Others Others Fuel Oil 4% Fuel Oil Wind Wind 5% 1% 1% 7% 8% Generation via hydro Lignite & Coal decreased by 3 ppt, while Lignite & Coal 34% 35% generation from wind and coal increased by 1 pp
Slide 47: Installed Capacity Changes by Fuel Type
MARKET HIGHLIGHTS Installed Capacity Changes by Fuel Type 1H2020 – 1H2019 CAPACITY CHANGES Total installed capacity in Turkey Fossil Renewable has reached 91,460 MW in 1.200,00 1H2020, indicating a slight increase 1.000,00 800,00 of 1,086 MW YoY (+1.2 %). 600,00 400,00 1.091 200,00 183 542 216 When
Slide 48: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption In 1H2020, electricity generation decreased by 5% and consumption by 4% YoY due to Covid-19 lockdown. GENERATION (GWh) CONSUMPTION (GWh) 150.000 150.000 140.000 140.000 130.000 130.000 120.000 120.000 110.000 110.000 100.000 141.650 100.000 141.025 135.425
Slide 49: Appendix
APPENDIX
Slide 50: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY) FY2017 FY2018 FY2019 1H2019 1H2020 Net sales 3.599.311.868 4.669.249.102 5.578.594.781 2.312.965.207 3.466.912.240 Cost of sales -3.283.982.668 -3.933.709.353 -4.563.137.567 -1.749.780.328 -2.889.139.639 Gross profit 315.329.200 735.539.749 1.
Slide 51: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Assets (TRY) 2017 2018 2019 1H2019 1H2020 Cash and cash equivalents 59.577.791 53.026.362 121.503.123 91.628.426 462.973.432 Trade receivables net 759.563.092 1.403.203.217 1.863.493.659 1.928.922.871 2.491.880.034 Due from related parties and sharehol
Slide 52: Cash Flow
FINANCIAL HIGHLIGHTS Cash Flow (TRY mn) 2017 2018 2019 1H2019 1H2020 Net income (loss) before tax 389.574.034 150.478.434 455.343.289 228.629.352 291.101.244 Depreciation and amortisation 225.000.265 394.018.340 485.469.510 229.365.177 221.494.993 Other adjustments 113.887.076 591.075.108 199.391.23
Slide 53: 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 54: Planned Investments
Planned Investments Power Plant Fuel Type Installed Capacity (MW) Completion Year Uzbekistan Natural Gas 240 2021 Uzbekistan power plant will utilise the existing equipments from Ali Metin Kazancı Antalya Natural Gas Combined Cycle Power Plant, which had left the transmission system following the pa
Slide 55: Contact Investor Relations
Contact Investor Relations Nurdan Cengizek Investor Relations and Corporate Communications Executive Nurdan.Cengizek@aksa.com.tr +90 216 681 1036 Hıdır Yıldız Investor Relations Specialist Hidir.Yildiz@aksa.com.tr +90 216 681 1041 Rüzgarlıbahçe Mah. Özalp Çıkmazı No:10 Kavacık / Beykoz, Istanbul
Slide 56: 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
Aksa Enerji Uretim A.S. — Investor Presentation (September 2020) on 6ix