Aksa Enerji Uretim A.s. · BIST:AKSEN

Aksa Enerji Uretim A.s — Investor Presentation (December 2017)

48 slides from Aksa Enerji Uretim A.s's investor presentation, Dec 1, 2017

  1. Slide 1: Investor Presentation 01 December 2017

    Investor Presentation 01 December 2017

  2. Slide 2: Key investment highlights

    Key investment highlights 1 Part of a dedicated energy group 2 Largest quoted Independent Power Producer (IPP) in Turkey 3 11 operational assets totalling 2,347 MW and a pipeline of 174 MW 4 Strong exposure to growing African electricity market 5 Ghana, Madagascar and Mali power plants are operation

  3. Slide 3: Part of dedicated energy group

    PART OF 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 energy busin

  4. Slide 4: 8 assets under operation across Turkey

    8 assets under operation across Turkey 8 BOLU-GÖYNÜK 1 KIYIKÖY 270 MW 7 27 MW ÇORUM-İNCESU 15 MW 2 BALIKESIR ŞAMLI 114 MW Total 1,991 MW 3 MANISA 115 MW ŞANLIURFA 6 147 MW 4 ANTALYA 1,150 MW NORTHERN CYPRUS 5 153 MW Fuel-Oil Hydroelectric Natural Gas Lignite Wind (4 plants (1 plant) (3 plants) (1 pl

  5. Slide 5: 3 assets under operation across Africa

    3 assets under operation across Africa Aksa Energy’s installed capacity in Africa will reach 530 MW once the power Mali HFO PP became plants reach full capacity. operational with 10 MW installed capacity at the beginning of August. The remaining 30 MW Current Total was commissioned in 386 MW Septemb

  6. Slide 6: Pipeline of 2 international projects adding 144 MW to our portfolio

    Pipeline of 2 international projects adding 144 MW to our portfolio Current Installed Total Installed Pipeline Capacity Capacity 144 MW -141 MW 2.380 MW 2,377 MW 144 15 15 141 141 270 270 1.412 1.412 683 539 Sep 2017 Under Construction Asset Sale 2017-2019 Fuel-oil Natural Gas Lignite Wind Hydro 6

  7. Slide 7: International expansion

    INTERNATIONAL EXPANSION

  8. Slide 8: Aksa Energy in Africa

    AKSA ENERGY IN AFRICA GHANA MADAGASCAR MALI Population: 28,5 mn Population: 25,5 mn Population: 18,6 mn GDP: $37.54 bn GDP: $ 9.7 bn GDP: $12.7 bn GDP per capita: $1697 reel GDP per capita: $410 GDP per capita: $721 Installed Capacity: 3,655 MW Installed Capacity: 500 MW Installed Capacity: 380 MW E

  9. Slide 9: Ghana

    GHANA  6.5 year power purchase agreement (PPA) with Republic of Ghana for installation of a 370 MW HFO plant, electricity generation and the guaranteed sale of this energy. Can be extended before the 6.5 year term is completed.  Contract approved by the Parliament of Republic of Ghana  Electricit

  10. Slide 10: Ghana HFO Power Plant – 1st Phase Completed

    GHANA HFO Power Plant – 1st Phase Completed Over 120,000 m2 power plant area Land purchased 1200 containers of equipment 650 employees on site (90% local) 200 employees to work once construction is completed ( Picture as at 10 May 2017) Construction completed in 9,5 months utilising existing equipme

  11. Slide 11: Ghana – Fast Track USD Based Cash Generation

    GHANA – Fast Track USD Based Cash Generation  Became operational at the end of March with 192.5 MW and increased to 280 MW at the beginning of August.  First phase is completed and 6.5 years contract started in August  Minimum 300 MW installed capacity by YE2017  Option to go up to 370 MW by YE2

  12. Slide 12: Madagascar

    MADAGASCAR  20 year power purchase agreement Installed Capacity (MW) (PPA) in the Republic of Madagascar with Jiro Sy Rano Malagasy (Jirama), the state-owned electricity and water 500 services company. 600 400 120  Established a 58,35% subsidiary in the 200 Republic of Mauritius (Aksaf Power 0 Ltd

  13. Slide 13: Madagascar – 1st Phase (66 MW) Completed

    Madagascar – 1st Phase (66 MW) Completed 13

  14. Slide 14: Madagascar – Key Points

    Madagascar – Key Points  Guaranteed sales of 900,000 MWh/year when fully operational.  17% of consumption in the country to be provided by Aksa Energy  2017E production: 0.2 TWh  The construction started in 4Q2016.  2018E production: 0,5 TWh  Equipment from the existing HFO plants were used, 

  15. Slide 15: Madagascar HFO Power Plant Opening Ceremony

    Madagascar HFO Power Plant Opening Ceremony 15

  16. Slide 16: Madagascar HFO Power Plant Opening Ceremony

    Madagascar HFO Power Plant Opening Ceremony 16

  17. Slide 17: Mali

    MALI  40 MW HFO power plant in the capital of Republic of Mali, Bamako Installed Capacity (MW) 380  3 year contract signed with Énergie du Mali for the guaranteed sale of the energy 400 generated 200 40  EURO based tariff is approved 0 MALI AKSA Mali  Existing equipment was used  No external fi

  18. Slide 18: Mali – Operational since August 2017

    Mali – Operational since August 2017 Picture as at June 2017 18

  19. Slide 19: Mali – Key Points

    Mali – Key Points  €4mn mobilisation fee is received  €1.6mn payment guarantee is received  Became operational at the beginning of August with 10 MW  Full commissioning (40 MW) in September  2017E production: 0,1 TWh  2018E production: 0,24 TWh  13% of consumption in the country to be provide

  20. Slide 20: Turkey & Africa

    TURKEY & AFRICA African PPs will be making up 77% of EBITDA in 2017 EBITDA TURKEY AFRICA 20

  21. Slide 21: Asset sale

    ASSET SALE

  22. Slide 22: 355 MW Asset Sale – USD 412 mn

    355 MW Asset Sale – USD 412 mn 118 MW WPP and 81 MW HEPP completed. 15 MW HEPP and 141 MW WPP Kozbükü, Sebenoba, Karakurt, Ayvacık, Kapıdağ, İncesu, Şamlı, Kıyıköy Belen/Atik USD 225 mn completed USD 164,9 mn (plus $21.6mn additional) USD 107 mn bank loans paid off USD 69,6 mn bank loans to be paid

  23. Slide 23: 2017 Guidance

    2017 GUIDANCE

  24. Slide 24: 2017 Guidance

    2017 GUIDANCE USD mn EBITDA  SALES: 17 TWh 200 157 163 144  REVENUES: TRY 3.1 bn ($861 mn) 150 140  CAPEX: TRY 293 mn ($81 mn) 100 50  2017E EBITDA: TRY 504 mn ($140 mn) 0 2014 2015 2016 2017E 24

  25. Slide 25: 2017 Guidance – Improvement in Debt Ratio

    2017 Guidance – Improvement in Debt Ratio USD mn Solid EBITDA growth achieved via African PPs along with financial 1.200 6,05 6,19 6,31 7,00 debt reduction via asset sale 1.000 5,18 5,31 6,00 1.008 results in: 800 4,22 3,96 4,19 908 5,00 814 4,00 759 761 718 744 600 687 3,00  Sharp decline in net 4

  26. Slide 26: EBITDA Composition (USD mn)

    EBITDA COMPOSITION (USD mn) 2016 2017E 80 140 144 18 10 32 0 2016 TURKEY TURKEY & MALI MADAGASCAR GHANA 2017E N.CYPRUS 26

  27. Slide 27: Share Performance

    SHARE PERFORMANCE Aksa Energy trades on Borsa Istanbul (BIST) with the ticker code AKSEN The share trades in: Daily Volume (mn AKSA ENERGY (AKSEN TI) TRY) Price (TRY) BIST 100 Index Sustainability Index 50 4,1 4,20 45 MCAP (15 Sep 2017) 4,00 40 3,80 TRY 2.2 bn / USD 647 mn 35 3,48 3,60 3,63 30 3,40

  28. Slide 28: Share Performance

    SHARE PERFORMANCE 15 September 2017 EV/EBITDA (TRY mn) 2013 2014 2015 2016 2017E 2018E AKSEN 14,7 13,3 10,2 10,6 9,8 5,0 AKENR 21,0 75,1 13,6 22,1 ZOREN 67,1 40,8 29,1 18,3 ODAS 22,9 20,1 28,3 17,6 Sector Average 31,4 37,4 20,3 17,2 28

  29. Slide 29: Potential opportunities for 2018 and beyond

    POTENTIAL OPPORTUNITIES FOR 2018 AND BEYOND 29

  30. Slide 30: Financial & Operational Highlights 9M 2017

    FINANCIAL & OPERATIONAL HIGHLIGHTS 9M 2017

  31. Slide 31: 9M 2017 Results - Snap Shot

    9M 2017 Results - Snap Shot * QoQ YoY 1Q17 2Q17 3Q17 Change 9M16 9M17 Change Installed Capacity (MW)* 2.104 MW 2.211 MW 2.377 MW 166 MW 2.279 MW 2.377 MW 98 MW Sales Volume (GWh)** 4.676 3.764 4.204 12% 12.774 12.644 -1% Net Sales (TL mn) 738 875 952 9% 2.212 2.565 16% Gross Profit (TL mn) 24 54 135

  32. Slide 32: 9M 2017 – Sales Breakdown (excl. Africa)

    9M 2017– Sales Breakdown (excl. Africa) * 1Q 2017 2Q 2017 3Q 2017 9M 2016 9M 2017 MWh TL/MWh MWh TL/MWh MWh TL/MWh MWh TL/MWh MWh TL/MWh Northern Cyprus 179.631 378 175.906 388 176.615 380 529.868 238 532.153 382 Renewable Market (YEKDEM) 192.332 266 112.655 272 116.784 263 601.511 223 421.771 267 B

  33. Slide 33: Financial highlights 9M 2017 Consolidated income statement

    Financial highlights 9M 2017 Consolidated income statement Net sales & EBITDA (TL mn) Operating income & Net income (TL mn) Source:IFRS financial statements 33

  34. Slide 34: Net financial debt and repayment schedule

    Financial highlights 9M 2017 Net financial debt and repayment schedule Net financial debt (TL mn) 3.500 90% 89% 100% 86% 88% 90% 3.000 76% 3.299 3.086 3.096 2.984 80% 2.500 62% 2.742 70% 2.000 60% 50% 1.500 1.781 40% 1.000 30% 20% 500 10% - 0% 2014 2015 2016 1Q 2017 2Q 2017 3Q 2017 5.2 6.2 7.1 8.7 8

  35. Slide 35: Consolidated income statement

    Consolidated income statement (TRY mn) 31.12.2010 31.12.2011 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.03.2017 30.06.2017 30.09.2017 Net sales 911,9 1.315,4 1.840,6 1.786,0 1.957,4 2.306,7 3.178,2 738,4 1.613,0 2.565,4 Cost of sales -775,5 -1.088,0 -1.604,0 -1.565,9 -1.710,8 -1.979,5

  36. Slide 36: Consolidated balance sheet

    Consolidated balance sheet Assets (TRY mn) 31.12.2010 31.12.2011 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.03.2017 30.06.2017 30.09.2017 Cash and cash equivalents 78,3 110,1 40,6 22,3 34,2 48,5 219,4 6,0 199,5 4,5 Trade receivables net 113,0 261,5 245,9 142,3 88,7 119,8 219,7 262,9 3

  37. Slide 37: Consolidated statement of cash flows

    Consolidated statement of cash flows (TRY mn) 31.12.2010 31.12.2011 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.03.2017 30.06.2017 30.09.2017 Net income (loss) before tax 69,4 -122,0 226,5 -156,1 26,6 -221,1 -367,6 -88,4 -85,0 19,8 Depreciation and amortisation 71,7 92,5 105,3 111,8 12

  38. Slide 38: Turkish market

    TURKISH MARKET

  39. Slide 39: The largest quoted IPP in Turkey

    The largest quoted IPP in Turkey IPPs by Installed Capacity 3.600 3.145 2.377 (MW) 1.665 1.490 1.224 952 700 392 364 Enerjisa Limak Aksa Enerji İÇDAŞ Eren Enerji Akenerji Cengiz Enerji Zorlu Enerji Ayen Enerji AES Entek Source: Information obtained from each IPP’s annual report or website. Publicly

  40. Slide 40: Market Highlights - 9M Key Figures

    Market Highlights- 9M Key Figures Total installed capacity in Turkey has reached 81,328 MW in 9M 2017, an increase of 3,408 MW (4%) YoY. Installed Capacity by Fuel Type Generation by Fuel Type Hydro; 33% Other; 2% Hydro; 22% Wind; 8% Natural gas; 81,328 MW 37% Wind; 6% Others; 4% Fuel-Oil; 1% Natura

  41. Slide 41: Market Highlights - Installed Capacity Changes

    Market Highlights - Installed Capacity Changes  When new and decommissioned capacities are netted off, there is an increase of 827 MW in wind, 455 MW in natural gas, 544 MW in hydro and decrease of 77 MW in fuel-oil and 32 MW in coal&lignite capacities in 9M 2017. 9M2017 - 2016 YE Capacity Changes

  42. Slide 42: Market Highlights - Consumption

    Market Highlights- Consumption  Electricity generation increased by %8 while consumption increased by 6% YoY in 9M2017. Generation (GWh) Consumption (GWh) 217.518 217.358 220.000 220.000 205.460 201.606 197.325 200.000 194.209 200.000 180.000 180.000 160.000 160.000 140.000 140.000 120.000 120.000

  43. Slide 43: Market Highlights – Prices

    Market Highlights – Prices Weighted average spot price was 168 TL in 9M 2017, 23% higher than 9M 2016 due to:  9M 2016 setting a very low base (mild weather & very strong renewable production)  Natural gas consumption limitations brought upon generation facilities and heavy weather conditions in 1

  44. Slide 44: Appendix

    APPENDIX

  45. Slide 45: Licence Portfolio (Operational)

    Licence Portfolio (Operational) Power Plant License Owner Fuel Type Installed Capacity (MW) % Northern Cyprus Aksa Cyprus Fuel-oil 153 Ghana Aksa Energy Fuel-oil 280 Mali Aksa Energy Fuel-oil 40 Madagascar Aksa Energy Fuel-oil 66 Total Fuel-Oil fired power plants 539 23% Antalya NGCC Aksa Energy Nat

  46. Slide 46: Ongoing Investments

    Ongoing Investments Under Construction Power Plant Investment License Owner Fuel Type Capacity (MW) Completion Year Ghana Greenfield Aksa-Ghana HFO 90 2018 Madagascar Greenfield Aksaf Power HFO 54 2018-2019 144 Total 144 The above projects are utilising mostly existing equipments from Şırnak, Hakkar

  47. Slide 47: Contact - Investor Relations

    Contact- Investor Relations Özlem McCann Director Investor Relations and Corporate Communications Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Özalp Çıkmazı No:10 Kavacık Beykoz, Istanbul 47

  48. Slide 48: Disclaimer

    Disclaimer Aksa Enerji 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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