Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz — Investor Presentation (November 2020)
45 slides from Aygaz Anonim Sirketi's investor presentation, November 2020
Slide 1: November 2020
November 2020 Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 2: Content
CONTENT A Overview G Other participations B World LPG market H Financial highlights C Turkish LPG market & Aygaz I Appendix D The LPG value chain J Glossary E Participation portfolio K Disclaimer F Natural gas L Contacts Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Pub
Slide 3: Aygaz overview
3 A Aygaz overview 2019 10.2 billion REVENUE 2,1 m tons SALES OF LPG LEADING 26%* LPG MARKET SHARE LPG DISTRIBUTOR * EMRA 2019 of TURKEY NATURAL GAS REFINERY DIVERSIFIED PARTICIPATION PORTFOLIO IN ENERGY POWER GENERATION Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Pub
Slide 4: Overview
4 > Overview SUMMARY FINANCIALS (Cons. In m TL) 2019 2018 2017 2019-2018 Change Revenue 10,211 9,554 8,469 7% EBITDA 492 160 352 207% Net Profit 273 228 577 20% EBITDA Margin 5% 2% 4% +3 Net Profit Margin 3% 2% 7% +1 Volume (000 tons) 2,068 2,000 2,154 3% SHAREHOLDERS (%) As of 30/09/2020 PUBLICLY T
Slide 5: Core business - LPG distribution
5 > Core business - LPG distribution Generic brand for LPG 22nd largest industrial company of Turkey, as of 2019 Most preferred LPG brand in Turkey since its foundation Market leader with 3 brands AYGAZ VOLUMES (000 tons) MARKET SHARES (%) 42 35 72 47 38 933 1.025 865 993 907 42 22 777 792 759 730 7
Slide 6: World LPG market
6 B World LPG market WORLD LPG CONSUMPTION (m tons) 2018 313 2017 302 2016 299 • Fastest growing energy source after 2015 279 renewable energy 2014 272 • 300 billion USD business size worldwide 2013 266 2012 255 • Sources of LPG production; 2011 250 2010 244 61% 39% 2009 236 NATURAL GAS CRUDE OIL 20
Slide 7: World LPG consumption
7 > World LPG consumption World LPG Consumption World LPG Consumption By Sectors (%) By Regions (%) 44 43 Asia Pasific Domestic 1 28 4 18 Agriculture Chemical Africa North America 8 11 9 17 Refinery Industry S.&C. America Europe&Eurasia 8 9 Autogas Middle East WLPGA Statistical Review of Global LP G
Slide 8: Prices of LPG and brent
8 > Prices of LPG and brent 140 1,200 113 120 108 1,000 100 977 800 894 $/barrell 80 $/ton 69 600 60 56 59 64 469 48 32 536 41 400 40 421 371 368 321 330 200 20 0 0 SP (Algeria) Petroleum (Brent) • There is a correlation between LPG and oil price • Seasonality can also affect LPG price • September 2
Slide 9: Turkish LPG market
9 C Turkish LPG market LPG consumption in Europe (m ton) 4.1 m tons #2 in Europe #10* in the World RUSSIA 4.4 ~90 distribution companies TURKEY 4.1 Leading 3 players in the cylinder market and first 8 players in the autogas market hold over ITALY 3.2 80% of the total market POLAND 2.3 Liberal market
Slide 10: LPG market ranking
10 > LPG market ranking 1- ITALY 1.4 m tons 2- SPAIN 1.2 m tons 3- FRANCE 1.1 m tons 4- RUSSIA 1.1 m tons 5- TURKEY 0.8 m tons THE 5th BIGGEST DOMESTIC LPG MARKET IN EUROPE 1- TURKEY 3.3 m tons 2- RUSSIA 3.2 m tons 3- SOUTH KOREA 3.1 m tons 4- POLAND 1.8 m tons 5- ITALY 1.6 m tons THE BIGGEST AUTOGA
Slide 11: Cylinder gas
Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 12: Cylinder market starting to stabilize
12 > Cylinder market starting to stabilize CYLINDER MARKET RATES OF CHANGE (YoY) 4% Turkish 821 market 816 812 2% 0 750 729 -2% (000 tons) -4% -6% Aygaz 343 342 335 -8% 315 302 -10% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 TURKISH MARKET AYGAZ With the effects of the on-going natural gas co
Slide 13: Aygaz; leader in cylinder market since its foundation
13 > Aygaz; leader in cylinder market since its foundation CYLINDER MARKET SHARES • Generic brand AYGAZ 41.5% • Market maker • Largest dealer network with high sales efficiency SHV 29.0% • 60% market share in residential use Demirören Group* 19.2% • Fully integrated production cycle; Cylinder Other
Slide 14: Autogas
Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 15: World's biggest autogas market
15 > World’s biggest autogas market RATES OF CHANGE (YoY) 14% AUTOGAS MARKET 12% 3,354 3,283 10% 3,142 3,117 8% Turkish 3,069 6% market 4% (000 tons) 2% 0 792 Aygaz 777 759 730 734 -2% -4% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 TURISH MARKET AYGAZ Factors affecting autogas market; • 30% m
Slide 16: Price economy of autogas
16 > Price economy of autogas 50% 30%+ 40% 30% 20% 10% 0% -10% -20% -30% price advantage -40% to gasoline May-19 May-15 May-16 May-17 May-18 May-20 Jan-15 Sep-15 Jan-16 Sep-16 Jan-17 Sep-17 Jan-18 Sep-18 Jan-19 Sep-19 Jan-20 Sep-20 To gasoline To diesel PUMP PRICE OF AUTOGAS ACROSS THE WORLD (%) 39
Slide 17: Autogas; most widely-used passenger car fuel of Turkey
17 > Autogas; most widely-used passenger car fuel of Turkey RATIO OF CARS REGISTERED TO TURKISH CAR PARK (m cars) TRAFFIC ACC. TO FUEL TYPE 4.7 4.7 4.4 4.6 4.3 4.6 4.8 3.8 4.3 38% 3.3 5% 3.1 3.1 3.1 3.0 75% 2.9 15% 37% 24% 2015 2016 2017 2018 2019 2004* 2019 GASOLINE DIESEL AUTOGAS GASOLINE DIESEL A
Slide 18: Leader of the biggest autogas market in the world
18 > Leader of the biggest autogas market in the world AUTOGAS MARKET SHARES MARKET SHARE & STATION NUMBER SHARE (%) 21.9 MARKET SHARE AYGAZ 21.9% STATION NUMBER SHARE PO 12.6% 16 SHELL 11.6% 1312.6 11.6 9.8 DEMİRÖREN GROUP* 9.8% 8 8 9 7.3 6.5 5 5.4 BP 7.3% 4 4 2.6 SHV GROUP** 6.5% DEMİRÖRENGROUP PO
Slide 19: Autogas car park growth
19 > Autogas car park growth Autogas 1,000+ conversion points conversions OEM; original equipment $500 average cost of conversion manufacturer Payback in 15,000 km • Some major car manufacturers are providing guaranteed conversion currently AUTOGAS CONVERSIONS (m cars) 12.4 12.5 12 10.6 11.3 4.6 4.7
Slide 20: The LPG value chain
20 D The LPG value ~300 1,729 auto gas stations tankers chain 1,000,000 vehicles using Aygaz Otogaz Moving&floating Fixed storage storage capacity capacity of of 37,000 m3 178,400 m3 ~2,300 bulk gas customers 3 LPG ships 2.1 million belonging to tons of LPG the fleet of supply Anadoluhisarı Tankerci
Slide 21: Competitive supply chain
21 > Competitive supply chain BIG PLAYER ADVANCED MODEL • #1 purchaser in Mediterranean • Direct imports to 5 different locations • #1 importer in Turkey • Most diversified supply portfolio in Turkey • #1 LPG exporter in Turkey Diversified supplier & origins • #1 storage owner in Turkey Diversified
Slide 22: Participation portfolio
22 Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 23: Participation portfolio
23 E Participation portfolio Aygaz Doğalgaz Anadoluhisarı 100% 100% EYAŞ* Akpa 20% 100% Opet-Aygaz Entek Gayrimenkul 50% 50% *EYAŞ owns 51% of the shares of TÜPRAŞ Financial Investments: Koç Finansal Hizmetler A.Ş. (3.93%), Ram Dış Ticaret A.Ş (2.5%), Tanı Pazarlama ve İletişim Hizmetleri A.Ş. (10%)
Slide 24: Natural gas
24 F Natural gas LNG SALES Transportation 16% market share, 2019 sales: and regasification 300 industrial 79 mcm customers SALES VOLUME (mcm) PIPELINE NATURAL GAS SALES 1,279 Started in 2019 sales: 961 2010 694 mcm 837 827 694 PROJECTS LNG & Pipeline gas import 92 100 105 77 79 2015 2016 2017 2018 2
Slide 25: Other participations
25 G Other participations POWER GENERATION SALES AND MARKETING Direct sale of cylinder gas and carboy TOTAL INSTALLED CAPACITY: 362 MW water throughout Turkey Kocaeli Natural Gas Fuel trade at its fuel stations Combined Cycle (NGCC): 97 MW 8 Hydro Assets: (HEPP): 265 MW STRATEGY OPET AYGAZ GAYRİMENK
Slide 26: Aygaz key takeaways
26 > Aygaz key takeaways Consistent Brand Long-term Diversifier Market Power Strategy & Portfolio Leader Builder Investor Strong Sales & Financial Logistics Network Strength STRATEGIC PRIORITIES Sustain its market leadership in LPG by; • Investing in the future with the responsibility of being the i
Slide 27: Shareholder value
27 > Shareholder value BIST Code AYGAZ STRENGTHS • Sustainable operating profitability from core business; LPG Bloomberg Code AYGAZ.TI • Resistant to economic fluctuations and crises Reuters Code AYGAZ.IS • Regular dividend payments IPO Date 13.01.1988 Free Float Rate 24.3% • Corporate governance pr
Slide 28: Financial highlights
28 H Financial highlights 10,211 REVENUE (m TL) 9,554 8,469 6,420 6,749 2015 2016 2017 2018 2019 Revenue figure fluctuations are mainly due to; • FX rate changes • Commodity price changes Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 29: Financial highlights
29 > Financial highlights GROSS PROFIT AND GPM EBITDA AND EBITDA MARGIN 9% 12% 5% 11% 9% 6% 7% 5% 4% 787 957 2% 492 677 741 337 394 634 352 160 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 GROSS PROFIT GROSS PROFIT MARGIN EBITDA EBITDA MARGIN NET PROFIT AND NPM PROFIT MARGINS 7% 12% 7% 6% 10% 8
Slide 30: Financial highlights
30 > Financial highlights NET CASH (m TL) WORKING CAPITAL (m TL) -63 324 186 183 348 263 2016 297 577 230 251 -263 -380 483 475 187 440 228 566 2015 -582 -372 -471 -670 -560 -579 2017 -753 2015 2016 2018 2019 2017 2019 TRADE PAYABLES TRADE RECEIVABLES INVENTORY WORKING CAPITAL 2018 CURRENT RATIO RET
Slide 31: Financial highlights
31 > Financial highlights DEBT PROFILE AS OF 31/12/2019 (m TL) 12M 2019 12M 2018 ST Borrowings 65 79 TL Bond; Current portion of LT Borrowings 418 492 23% TL LT Borrowings 764 830 Loan; FX Total Debt 1,247 1,401 63% Loan; Cash and cash equivalents (-) 14% (665) (648) = Net Debt 582 753 ST: Short-ter
Slide 32: Appendix
32 I Appendix Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 33: Income statement summary
33 1 Income statement summary (m TRY) 2015 2016 2017 2018 2019 Revenue 6,420 6,749 8,469 9,554 10,211 COGS (5,743) (5,962) (7,728) (8,920) (9,254) Gross Profit 677 787 741 634 957 Operating Profit 250 308 265 71 365 Profit Before Tax 458 469 621 250 306 Net Profit 418 416 577 228 273 EBITDA 337 394
Slide 34: Balance sheet summary
34 2 Balance sheet summary (m TRY) 2015 2016 2017 2018 2019 Cash & Cash Eq. 289 568 593 648 665 Trade Receivables 483 475 577 440 566 Inventories 186 183 324 348 263 Inv. Acc. Under Equity Method 1,867 1,922 2,273 2,305 2,059 Prop. Plant & Eq. 651 658 678 687 713 Financial Debt (551) (630) (973) (1,
Slide 35: 2020 Q3 – Income Statement Summary
3 2020 Q3 – Income Statement Summary QUARTERLY / (YoY) Revenue 3,045 Million TL 19% Operating profit 172 Million TL 34% EBITDA 210 Million TL 31% EBITDA (excl. other op. inc/exp) 208 Million TL 38% Net profit 83 Million TL 22% Bu doküman Genel olarak sınıflandırılmıştır. This document is classified
Slide 36: 2020 9M - Income Statement Summary
4 2020 9M - Income Statement Summary 9 MONTHS CUMULATIVE / (YoY) Revenue 7,195 Million TL -6% Operating profit 199 Million TL -21% EBITDA 313 Million TL -9% EBITDA (excl. other op. inc/exp) 306 Million TL -4% Net profit -103 Million TL -152% Bu doküman Genel olarak sınıflandırılmıştır. This document
Slide 37: Debt Profile
5 Debt Profile (m TL) 9M 2020 12M 2019 Debt Profile as of 30/09/2020 ST Borrowings 221 65 TL Bond; 11% *FX Loan; Current portion of LT Borrowings 436 418 5% LT Borrowings 1, 014 764 TL Loan; Total Debt 1,672 1,247 84% Cash and cash equivalents (-) 1,084 665 = Net Debt 588 582 * FX position is active
Slide 38: 2020 Q3 Aygaz LPG Sales (000 tons)
6 2020 Q3 Aygaz LPG Sales (000 tons) 619(***) 532 520 527(**) 402(*) 311 216 262 311 177 219 216 179 155 130 11 8 8 6 8 87 70 62 80 84 cylinder bulk auto other Q3 2020 sales volumes were realized as 216 thousand tons in Autogas ( -1% YoY) 84 thousand tons in Cylinder Gas ( -3% YoY) 619 thousand tons
Slide 39: Market Shares
7 Market Shares CYLINDER AUTOGAS 41.5% As of August 2020 EMRA report, Aygaz cylinder and autogas market shares are 41.5% and 21.5% respectively. 21.5% AUGUST 2020 (41.8% and 21.9% in August 2019) According to August 2020 EMRA 479,067 report, Turkish cylinder sales volume -1.9% is 479,067 tons and au
Slide 40: Subsidiaries and Affiliates
40 8 Subsidiaries and Affiliates Subsidiaries Principal activity Particip ation Anadoluhisarı Tankercilik A.Ş Shipping 100% Kandilli Tankercilik A.Ş. Shipping 100% Kuleli Tankercilik A.Ş. Shipping 100% Kuzguncuk Tankercilik A.Ş. Shipping 100% Akpa Day. Tük. Lpg ve Akar. Ürün. Paz. A.Ş. Marketing 100
Slide 41: Subsidiaries and Affiliates
41 > Subsidiaries and Affiliates Affiliates Principal activity Participation Enerji Yatırımları A.Ş. Energy 20% Entek Elektrik Üretimi A.Ş. Electricity 50% Opet Aygaz Gayrimenkul A.Ş. Real Estate 50% Financial Assets Principal activity Participation Koç Finansal Hizmetler A.Ş. Finance 3.93% Ram Dış
Slide 42: Forward looking statements for 2020
9 Forward looking statements for 2020 • Cylinder: 285-300 thousand tons Sales volume • Autogas: 660-700 thousand tons • Cylinder: 41.5%-43.5% Market share • Autogas: 21.4%-22.6% Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 43: Glossary
43 J Glossary LPG Liquid Petroleum Gas EMRA Energy Market Regulatory Authority WLPGA World LPG Association SP Sonatrach Price PETDER Petroleum Industry Association FOB Free On Board CIF Cost, Insurance & Freight Med Mediterranean VLGC Very Large Gas Carrier EYAŞ Enerji Yatırımları A.Ş. LNG Liquid Na
Slide 44: Disclaimer
44 K Disclaimer • This presentation may contain 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 varia
Slide 45: Contacts
45 L Contacts investorrelations@aygaz.com.tr ferda.erginoglu@aygaz.com.tr Ferda Erginoğlu, CFO +90 212 354 1764 sebnem.yucel@aygaz.com.tr Şebnem Yücel, Finance Manager +90 212 354 1510 selin.sanver@aygaz.com.tr Selin Sanver, Investor Relations Manager +90 212 354 1659 www.aygaz.com.tr Bu doküman Gen