Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz — Investor Presentation (November 2022)
51 slides from Aygaz Anonim Sirketi's investor presentation, Nov 20, 2022
Slide 1: Aygaz Investor Presentation November 2022
Aygaz Investor Presentation November - 2022 1 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 2: Agenda
AGENDA Company Profile (slide #3-4) 1 Aygaz Strategies (S) (slide #5) 2 S1 - Turkish LPG Market and Business (slide #6-15) 3 S2 - Being an International LPG Player (slide #16-18) 4 S3 - Strategic Business Areas (slide #19-23) 6 S4 – Sustainability & ESG Topics (slide #24-30) 7 Financial Highlights (
Slide 3: Aygaz at a Glance
Aygaz at a Glance Core Business LPG International Operations Shareholding Structure Founded in 1961 United Aygaz - Bangladesh Koç Group’s first company Procurement, 51.2 % Koç Group in energy sector LPG sourcing, storage, filling storage, filling and and distribution in distribution of LPG Banglades
Slide 4: Aygaz in Figures
Aygaz in Figures Key Operating Figures of 2021 Facilities in Turkey The largest LPG storage in Aygaz total LPG sales Aygaz Doğal Gaz total LNG 6 Filling plants Turkey volume & PNG sales volume 178 thousand m3 328 mcm 2.2 million tons 7 Distribution centers Cylinder gas sales 5 Cylinder gas dealers P
Slide 5: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz creating environmental solutions platform and home- while preparing culture, techno
Slide 6: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business With a focus on sustainability; creating environmental solutions while Carrying the talent and preparing culture, technology and power of the Aygaz talent for
Slide 7: Turkish LPG Market
Turkish LPG Market LPG as a commodity Turkish LPG Market Ranking → Mixture of hydrocarbons (butane and propane) # 4 in European domestic LPG # 2 in Global autogas market market → Portable and versatile Italy 1,4 Russia 3,3 → Low GHG emission, eco-friendly Spain 1,0 Turkey 3,1 France 1,0 South Korea
Slide 8: Aygaz’s Core Business
Aygaz’s Core Business Highlights → Leader; → Generic brand for LPG ✓ LPG distributor of Turkey → Most preferred LPG brand in Turkey since its foundation ✓ Of the 2nd biggest autogas market in the World → Market leader with 2 brands ✓ Of the 4th biggest domestic LPG market in Europe LPG Sales Volume
Slide 9: Cylinder Gas Market
Cylinder Gas Market Cylinder Gas Market (k ton) Cylinder Gas Market Shares Turkish Cylinder Market Aygaz Sales 812 750 729 718 699 41.1% 335 29.9% 315 302 297 287 18.1% 10.9% Aygaz İpragaz Oyak Group Other 2017 2018 2019 2020 2021 General factors affecting Turkish cylinder market Aygaz leading cylin
Slide 10: Autogas Market
Autogas Market Autogas Market (k ton) Market Shares & Station Number Shares Turkish Autogas Market Aygaz Sales 21.4% Market Share Station Number Share 3,283 3,354 3,177 3,065 3,117 16.0% 13.0% 12.7% 11.2% 9.4% 8.0% 8.0% 8.0% 7.5% 6.2% 6.0% 5.2% 4.0% 4.0% 2.4% 759 730 734 664 669 2017 2018 2019 2020
Slide 11: Autogas; 2nd most widely used passenger car fuel of Turkey
Autogas; 2nd most widely used passenger car fuel of Turkey Ratio of cars registered to traffic acc. to fuel type Turkish Car Park (M cars) Turkstat Data Turkstat Data Gasoline Diesel Autogas Electric- Hybrid Diesel Autogas Gasoline Electric - Hybrid 13.7 12.4 12.5 13 0% 1% 12 0.7 26% 3.2 3.2 3.1 3.1
Slide 12: Other LPG Sales
Other LPG Sales Other LPG Sales Volume (‘000 ton) Bulk LPG sales Bulk Wholesale International Trading Total ✓ used for heating, hot water, and cooking needs at home and for production in commercial and industrial enterprises ✓ accounts for 4% of Aygaz’s domestic retail sales. 1,289 1,190 Wholesale L
Slide 13: Competitive Supply Chain
Competitive Supply Chain BIG PLAYER IN LPG ADVANCED MODEL ✓ #1 LPG importer and exporter in Turkey ✓ Direct imports to 5 different terminals ✓ 37% of LPG imports ✓ Most diversified supply portfolio in Turkey ✓ 34 % of LPG exports ▪ Diversified supplier & origins ✓ #1 storage owner in Turkey (~24% of
Slide 14: Shipping Business
Shipping Business → Profitable operation adding value to supply chain processes through its fully utilized three owned and one leased fleet. → Aygaz is actively involved in maritime transportation of LPG, which first started in 1967. → In 2010, Aygaz assigned the management of its LPG carriers to it
Slide 15: Gebze Facility
Gebze Facility Exports (mn USD) Export Regions– 2021 Cylinder and Gas Appliances Production & Sales ✓ USD revenue generation through pressurized container and equipment exports. 23 6% ✓ Makes Aygaz a fully integrated LPG company producing its own cylinders 17 and gas appliances. 20% 36% 13 ✓ Embrace
Slide 16: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz platform creating environmental solutions while and home-delivery preparing culture
Slide 17: Bangladesh LPG Market
Bangladesh LPG Market LPG Consumption (k ton) 1.395 2015-2021 CAGR: 45% 1,232 960 764 518 343 148 2015 2016 2017 2018 2019 2020 2021 WLPGA → Bangladesh GDP growth rate reached 7% in 2021 doubling previous year’s figure and it is one of the most densely populated countries in the world with 166 milli
Slide 18: Bangladesh Investment: United Aygaz
Bangladesh Investment: United Aygaz Cumulative Capital Contribution: 37 million USD Aygaz Share: ~19 million USD 37 M USD Total 58 capital employees After receiving the LPG Two LPG sphere tanks with a operations license issued total capacity of 6,000 tons by Bangladesh Energy became operational and
Slide 19: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz creating environmental solutions while platform and home- preparing culture, techno
Slide 20: Parcel Delivery Business
Parcel Delivery Business Operations → Turkish e-commerce sector that grew by 39% in 2019 is up by 66% YoY in 2020 with the impacts of the pandemic. It is further up by 69% YoY in 2021 and the e-commerce volume reached TL 382 billion. Thanks to Aygaz dealers → Cargo distribution business, which conti
Slide 21: Sendeo
Sendeo After starting operations in 15 The number of distribution In line with the investment additional provinces to Istanbul points, which was 82 at the end of plan, company’s capital is in September 2021, expansion 2021, reached 447 in September. increased to 503.5 million in all 81 provinces was
Slide 22: Aygaz Doğal Gaz
Aygaz Doğal Gaz Sales Volume (mcm) Turkish Natural Gas Market LNG Pipeline Natural Gas Private Sector Market Share %7 Botaş Market Share %93 1,279 21 bcm 17 bcm Housing 827 694 2021 Industry 475 246 Electricity 105 77 79 73 82 15 bcm 2017 2018 2019 2020 2021 Source: EMRA → Achieved over TL 700 milli
Slide 23: Pürsu
Pürsu → Aiming to widen the scope of Aygaz’s water business carried out through its dealers and to achieve sustainable production, shares of Bal Kaynak Su İthalat İhracat Sanayi ve Ticaret A.Ş. was acquired in 2019, which held all necessary permits and licenses, along with the filling plant, where t
Slide 24: Aygaz Strategy
Aygaz Strategy Creating sustainable value by strengthening its leading position in Being an international LPG player the Turkish LPG business Carrying the talent and With a focus on sustainability; power of the Aygaz creating environmental solutions while platform and home- preparing culture, techno
Slide 25: Sustainability Efforts
Sustainability Efforts Member of Koç Group who has committed to be Carbon Policies adopted to further improve the Company’s Neutral by 2050 in line with the European Green Deal. compliance risk management and to comply with corporate governance and sustainability principals. LPG is a cleaner product
Slide 26: R&D Center
R&D Center → The objectives of Aygaz R&D Center include developing new products powered by LPG, enhancing LPG product quality, achieving digitalization with smart products, improving efficiency through automation systems, and contributing more to the consumers, national economy and the environment.
Slide 27: Digitilization Efforts
Digitilization Efforts AES Dealers’ AES Dealers’ AES ASG Mobile Aygaz Mobile Mogaz Mobile Aygaz e-Store Mobile Web Application Application Application Web Application Control center of AES's integrative The connection Our digital face that An application with The main structure ordering processes to
Slide 28: Work Culture in Aygaz
Work Culture in Aygaz Agile and Productive Organization • Aygaz Competence Model • Integrated and digital processes • New generation work methods Employee Experience • Work climate that supports Gaining Qualified cooperation, agile working that Supports Loyalty Human Resource and open communication
Slide 29: Risk Policy
Risk Policy FX & Interest Rate Risk • Zero FX exposure target after natural hedges • Portfolio with fixed/variable interest rates • Proactive management of FX and interest rate with derivatives Leverage & Liquidity Risk • Limits for financial ratios and active liquidity risk management: ✓ Net Financ
Slide 30: Corporate Governance & Credit Rating
Corporate Governance & Credit Rating Corporate Governance Rating June’22 Rating Score Main Sections: Avg. 95.61 Board of Directors 94.25 Stakeholders 99.51 Public Disclosure & Transparency 94.93 Shareholders 95.83 0 10 20 30 40 50 60 70 80 90 100 Source: SAHA Corporate Governance and Rating Services
Slide 31: Financial Highlights
Financial Highlights 31 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 32: LPG Price
LPG Price Price Data LPG - SP (Algeria) Brent 851 797 720 661 USD/Barrel 620 547 (USD/Ton) 538 493 124 437 119 407 375 90 93 330 73 75 74 67 248 66 50 41 32 40 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Oct-22 → Pursuant to the strong demand in the first two
Slide 33: Financial Highlights – 1/3
Financial Highlights – 1/3 Sales Revenue & LPG Sales Volume Gross Profit & Gross Profit Margin Sales Revenue (M TL) Aygaz LPG Sales ('000 ton) Gross Profit (M TL) Gross Profit Margin (%) 15,893 9% 9% 9% 9% 1,438 7% 9,554 10,211 10,145 8,469 957 912 741 634 2,154 1,999 2,067 2,151 2,245 2017 2018 201
Slide 34: Financial Highlights – 2/3
Financial Highlights – 2/3 Net Debt (M TL) Debt Profile as of 31/12/2021 Net TL Loan TL Bond FX Loan Debt/EBITDA 1.1 2.5 1.2 1.5 1.2 859 15% 753 582 604 15% 2,553 M TL 380 70% 2017 2018 2019 2020 2021 Working Capital (M TL) 3.000 Trade Payables Trade Receivables Inventory Working Capital 2.000 1,433
Slide 35: Financial Highlights – 3/3
Financial Highlights – 3/3 CAPEX (M TL) CAPEX Breakdown - 2021 202 Other Cylinders 20% 17% 128 Autogas 112 108 12% 90 Sendeo 19% Facility Inv. ;10% IT Pürsu R&D 8% 9% 5% 2017 2018 2019 2020 2021 Current Ratio Return on Equity* 25% 1.24 1.20 20% 1.18 11% 1.09 9% 1.06 -1% 2017 2018 2019 2020 2021 2017
Slide 36: Income Statement Summary
Income Statement Summary Income Statement (M TL) 2017 2018 2019 2020 2021 Revenue 8,469 9,554 10,221 10,145 15,893 COGS (7,728) (8,920) (9,254) (9,233) (14,455) Gross Profit 741 634 957 912 1,438 Gross Profit Margin 9% 7% 9% 9% 9% Operating Profit 265 71 365 288 418 Operating Profit Margin 3% 1% 4%
Slide 37: Balance Sheet Summary
Balance Sheet Summary Balance Sheet (M TL) 2017 2018 2019 2020 2021 Cash & Cash Eq. 593 648 665 961 1,693 Trade Receivables 577 440 566 671 1,065 Inventories 324 348 263 400 1,433 Inv. Acc. Under Equity Method 2,273 2,305 2,059 1,847 2,161 Prop. Plant & Equip. 678 687 713 696 772 Financial Debt (973
Slide 38: Quarterly Figures – Q3 and 9M 2022
Quarterly Figures – Q3 and 9M 2022 Financials (M TL) Q3 2022 Quarterly / YoY 9M 2022 9M / YoY Revenue 10,522 121 % 26,491 160 % Gross Profit 706 63 % 1,614 74 % Operating Profit 314 67 % 270 -18 % EBITDA (excl. other op. inc/exp) 269 12 % 512 14 % Net Profit (excl. non cont. interests) 1,538 357% 2,
Slide 39: Quarterly Figures – Q3 and 9M 2022
Quarterly Figures – Q3 and 9M 2022 Net Debt (M TL) Debt Profile as of 30/09/2022 Net Financial TL Loan TL Bond FX Loan Debt/ 1.1 1.2 1.7 3.0 2.2 EBITDA 2.244 16% 1.682 1.251 16% 3,691 M TL 859 589 68% Sep.21 Dec.21 Mar.22 Jun.22 Sep.22 Working Capital (M TL) Trade Payables Trade Receivables Inventor
Slide 40: LPG Market Information – Aug’22
LPG Market Information – Aug’22 Turkish LPG Market (‘000 ton) Aygaz Market Shares Cylinder August’21 August’22 - 5% 2.598 - 4% 2.458 41.6 % 41.7 % 2.069 1.990 194 k ton 167 k ton -14% + 6% 466 401 63 67 Autogas August’21 August’22 Total Autogas Cylinder Bulk 21.7% 22.5% Jan-Aug 2021 Jan-Aug 2022 447
Slide 41: Forward Looking Statements for 2022
Forward Looking Statements for 2022 Cylinder: 250 - 260 k tons Sales Volume Autogas: 670 - 700 k tons Cylinder: 41.0% - 43.0% Market Share Autogas: 21.5% - 22.5% 41 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 42: Appendix
Appendix 42 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 43: Competitive Advantages of Aygaz
Competitive Advantages of Aygaz Brand Power & ✓ Generic brand – name of LPG in Turkey ✓ Market leader in all segments of the market Consistent Market ✓ Market maker Leader ✓ Advantages of economies of scale ✓ More than 4,000 dealers all over Turkey Strong Sales & Logistics ✓ 6 filling plants, 7 dist
Slide 44: The LPG Value Chain
The LPG Value Chain ~300 1,781 auto gas stations tankers Moving&floating storage capacity of Fixed storage 37,000 m3 capacity of 178,400 m3 ~2,000 bulk gas customers 2.2 million 3 LPG ships belonging to tons of LPG supply the fleet of Anadoluhisarı Tankercilik Gebze Facility; exports of cylinders an
Slide 45: Participation Portfolio
Participation Portfolio Akpa Anadoluhisarı Marketing Shipping 100% 100% Aygaz Opet-Aygaz Naturalgas Real Estate 100% 50% *Enerji Yatırımları A.Ş. owns 46.4% of the shares of TÜPRAŞ ** 100% of the company shares are owned by Aygaz A.Ş.’s full subsidiary Kuleli Tankercilik A.Ş. *** Previous title: Ayg
Slide 46: Demerger Transaction Regarding Entek Shares
Demerger Transaction Regarding Entek Shares Transfer of Entek shares to Tüpraş from Koç Holding through partial demerger & from Aygaz through transfer of shares to shareholders ✓ Koç Holding transfered Entek to Tüpraş and became an indirect shareholder in Entek, through a higher stake in Tüpraş. ✓ A
Slide 47: Aygaz Share Value
Aygaz Share Value Aygaz Market Cap Dividend (M TL) Aygaz Fiyat TL BIST 30 460 386 150 150 150 Feb-21 Jun-21 Feb-22 Jun-22 May-21 Jul-21 Aug-21 May-22 Jul-22 Aug-22 Apr-21 Oct-21 Apr-22 Jan-21 Jan-22 Mar-21 Mar-22 Sep-21 Nov-21 Dec-21 Sep-22 2017 2018 2019 2020 2021 ➢ Aygaz market value is up by 44%
Slide 48: Koç Holding at a Glance
Koç Holding at a Glance Turkey’s Leading Investment Holding Company o Turkey’s largest industrial and services group ~8% ~7% ~7% Combined Revenues/ Total Exports/ R&D expenditure/ o Sustainability oriented business model GDP Turkey’s Exports Total private sector R&Ds1 focusing on profitable growth o
Slide 49: Contact
Contact investorrelations@aygaz.com.tr Gökhan Dizemen, CFO gokhan.dizemen@aygaz.com.tr +90 212 354 1764 Ali Sencer Turunç, Corporate Finance sencer.turunc@aygaz.com.tr & Strategy Director +90 212 354 1753 Selin Sanver, Investor Relations selin.sanver@aygaz.com.tr +90 212 354 1659 Manager www.aygaz.c
Slide 50: Glossary
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 Natural
Slide 51: Disclaimer
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 variables