Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz — Investor Presentation (July 2024)
50 slides from Aygaz Anonim Sirketi's investor presentation, Jul 17, 2024
Slide 1: Aygaz Investor Presentation July 2024
Aygaz Investor Presentation July - 2024 1 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 2: Agenda
Agenda Aygaz at a Glance LPG and Natural Gas Segment Operations Other Business Segments Financial Highlights 2024 Q1 Updates Sustainability & ESG Topics Appendix 2 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
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, in energy sector LPG sourcing, storage, filling storage, filling and and distribution in 51.2 % Koç Group distribution of LPG Banglades
Slide 4: Aygaz in Figures
Aygaz in Figures Key Operating Figures of 2023 Facilities in Turkey The largest LPG storage Aygaz total LPG sales Aygaz Doğal Gaz total LNG 5 Filling plants**** in Turkey volume* & PNG sales volume 178 thousand m3 2.5 million tons 78.5 mcm 8 Distribution centers Cylinder gas sales Cylinder gas deale
Slide 5: Aygaz Strategic Goals
Aygaz Strategic Goals Creating sustainable value by Broadening its international expansion strengthening its current position in through LPG investments in LPG and Natural Gas Segment in developed and developing countries Turkey Assessing the opportunities in core and adjacent businesses with a focu
Slide 6: Agenda
Agenda Aygaz at a Glance LPG and Natural Gas Segment Operations Other Business Segments Financial Highlights 2024 Q1 Updates Sustainability & ESG Topics Appendix 6 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 7: Turkish LPG Market
Turkish LPG Market LPG as a commodity Turkish LPG Market Ranking** (2022) → Mixture of hydrocarbons (butane and propane) # 5 in European domestic LPG # 2 in Global autogas market market → Portable and versatile İtalya 1.5 Rusya 3.5 → Low GHG emission, eco-friendly İspanya 0.9 Türkiye 3.1 Fransa 0.8
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 largest autogas market in the World → Market leader with 2 brands ✓ Of the 5th largest 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 729 718 699 612 621 41.% 302 297 29.8% 287 252 255 18.2% 10.8% Aygaz İpragaz Oyak Group Other 2019 2020 2021 2022 2023.0 General factors affecting Turkish cylinder market Aygaz leading cyli
Slide 10: Autogas Market
Autogas Market Autogas Market (k ton) Market Shares & Station Number Shares Turkish Autogas Market Aygaz Sales 3,517 3,354 3,065 3,117 3,098 32.2% 22.0% 734 697 774 15.6% 664 669 12.2% 8.9% 9.2% 2019 2020 2021 2022 2023 Aygaz PO Shell Oyak Group BP Other General factors affecting Turkish autogas mar
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 (mn cars) Diesel Autogas Gasoline Electric- Hybrid 15.2 13.7 14.2 13.1 0.3 0% 2% 12.5 0.1 0.1 3.8 4.4 29% 3.2 3.5 31% 3.0 34% 42% 4.9 5.0 5.1 2013 2023 4.7 4.8 4.8 5.0 5.
Slide 12: Competitive Supply Chain
Competitive Supply Chain BIG PLAYER IN LPG ADVANCED MODEL ✓ #1 LPG importer and exporter in Turkey ✓ Direct imports from 5 different terminals ✓ 52% of LPG imports ✓ Most diversified supply portfolio in Turkey ✓ 60 % of LPG exports ▪ Diversified supplier & origins ✓ #1 storage owner in Turkey (~24%
Slide 13: Shipping Business
Shipping Business → Profitable operation adding value to supply chain processes through its fully utilized three owned 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 its subsidiary An
Slide 14: Export Regions and Gebze Facility
Gebze Facility Exports (mn USD) Export Regions– 2023 Cylinder and Gas Appliances Production & Sales ✓ USD revenue generation through pressurized container and equipment 35 3% 4% exports. 34 ✓ Makes Aygaz a fully integrated LPG company producing its own cylinders and gas appliances. 30% ✓ Embraces Ay
Slide 15: Bangladesh LPG Market
Bangladesh LPG Market LPG Consumption* (k ton) 2017-2022 CAGR: %22 1,395 1,426 1,232 960 764 518 2017 2018 2019 2020 2021 2022 Source: WLPGA Statistical Review of Global LP Gas Report, 2023 → Bangladesh GDP growth rate** reached 7% in 2022 and it is one of the most densely populated countries in the
Slide 16: Bangladesh Investment: United Aygaz
Bangladesh Investment: United Aygaz Chittagong Plant Cumulative capital contribution: 61 mn USD Aygaz share: ~30.5 mn USD 61 mn USD Total 217 capital employees In Chittagong, in addition to 4 LPG sphere tanks in use with a total Bangladesh LPG market, which is capacity of 11,000 tons, the 1.4 millio
Slide 17: Aygaz Doğal Gaz
Aygaz Doğal Gaz Sales Volume (mcm) Turkish Natural Gas Market LNG Pipeline Natural Gas Private Sector Market %2 Botaş Market Share %98 14 bcm Housing 694 22 bcm 2023 Industry 475 Electricity 246 14 bcm 17 1.5 79 73 82 78 77 2019 2020 2021 2022 2023 Source: EMRA → Achieved over 1.4 billion TL in reve
Slide 18: Agenda
Agenda Aygaz at a Glance LPG and Natural Gas Segment Operations Other Business Segments Financial Highlights 2024 Q1 Updates Sustainability & ESG Topics Appendix 18 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 19: Parcel Delivery Business Line: Sendeo
Parcel Delivery Business Line: Sendeo ~ 1 bn TL revenue in 2023 Total 1,871 employees Total 4,448 customers’ with 1,555 in the field packages delivered . Maximum number of daily packages A business partnership was established delivered in March 2024 reached to 143k. Sendeo operates with 11 transfer
Slide 20: 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 21: Agenda
Agenda Aygaz at a Glance LPG and Natural Gas Segment Operations Other Business Segments Financial Highlights 2024 Q1 Updates Sustainability & ESG Topics Appendix 21 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 22: LPG & Natural Gas Business Line – Financials (1/2)
LPG & Natural Gas Business Line – Financials (1/2) (Based on purchasing power of Turkish Lira ("TL") as of 31 December 2023, the amounts are expressed in mn TL unless otherwise stated.) Sales Revenue (mn TL) Gross Profit & Gross Profit Margin 70,995 Gross Profit (mn TL) Gross Profit Margin (%) 63,88
Slide 23: LPG & Natural Gas Business Line – Financials (2/2)
LPG & Natural Gas Business Line – Financials (2/2) (Based on purchasing power of Turkish Lira ("TL") as of 31 December 2023, the amounts are expressed in mn TL unless otherwise stated.) Financials (mn TL) 2022 2023 Diff. % • Despite a 15% increase in total LPG sales volume compared to the previous y
Slide 24: Consolidated Financials (1/3)
Consolidated Financials (1/3) (Based on purchasing power of Turkish Lira ("TL") as of 31 December 2023, the amounts are expressed in mn TL unless otherwise stated.) Sales Revenue (mn TL) Gross Profit & Gross Profit Margin Gross Profit (mn TL) Gross Profit Margin (%) 71,288 64,835 4,963 3,858 7.7% 5.
Slide 25: Consolidated Financials (2/3)
Consolidated Financials (2/3) (Based on purchasing power of Turkish Lira ("TL") as of 31 December 2023, the amounts are expressed in mn TL unless otherwise stated.) Financials (mn TL) 2022 2023 Diff. % Revenue 71,288 64,835 (9) • The operating profit, realized at 1,267 mn TL in the LPG and Natural G
Slide 26: Consolidated Financials (3/3)
Consolidated Financials (3/3) (Based on purchasing power of Turkish Lira ("TL") as of 31 December 2023, the amounts are expressed in mn TL unless otherwise stated.) Working Capital (mn TL) Net Financial Debt (mn TL) CAPEX (mn TL) NWC*/ NFD/ 1.8% 1.2% EBITDA 2.8 N/M.** Sales 771 682 3,849 1,985 4,051
Slide 27: Consolidated Income Statement - Summary
Consolidated Income Statement - Summary (Based on purchasing power of Turkish Lira ("TL") as of 31 December 2023, the amounts are expressed in mn TL unless otherwise stated.) Income Statement (mn TL) 2022 2023 Diff (%)*** Revenue 71,288 64,835 (9) Gross Profit 3,858 4,963 29 Gross Profit Margin 5.4%
Slide 28: Consolidated Balance Sheet - Summary
Consolidated Balance Sheet - Summary (Based on purchasing power of Turkish Lira ("TL") as of 31 December 2023, the amounts are expressed in mn TL unless otherwise stated.) 28 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 29: Forward Looking Statements for 2024
Forward Looking Statements for 2024 Cylinder: 240 - 250 k tons Sales Volume Autogas: 770 - 800 k tons Cylinder: 41.0% - 43.0% Market Share Autogas: 21.5% - 22.5% 29 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 30: Agenda
Agenda Aygaz at a Glance LPG and Natural Gas Segment Operations Other Business Segments Financial Highlights 2024 Q1 Updates Sustainability & ESG Topics Appendix 30 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 31: Market Information
Market Information Turkish LPG Market (‘000 ton) Aygaz Market Shares Jan-Mar'23 Jan-Mar'24 Cylinder March’23 March’24 -8% 41.0% 1,041 41.5% 953 +3% 758 783 140 k 136 k ton ton -2% -77% 140 136 143 33 Autogas March’23 March’24 Total Autogas Cylinder gas Bulk 22.3% 21.7% Source: EMRA 758 k 783 k ton t
Slide 32: Operational indicators – Q1 2024
Operational indicators – Q1 2024 1Q 2024 Compared 4Q 2023 Compared (‘000 ton) to 1Q 2023 (‘000 ton) to 4Q 2023 Wholesale and International Sales* (‘000 ton) Wholesale International Total Domestic Retail 238 259 350 -14% -8% LPG Sales 288 -18% 170 Wholesale and 158 International 288 -18% 350 -18% -7%
Slide 33: LPG & Brent World Prices
LPG – Brent Prices LPG & Brent World Prices LPG - SP (Algeria) Brent 664 675 594 574 567 568 544 543 534 531 534 (USD/Ton) 506 489 467 USD/Barrel 405 355 94 91 81 83 82 79 85 86 83 78 80 84 85 76 75 80 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24
Slide 34: LPG & Natural Gas Business Line - Financials
LPG & Natural Gas Business Line - Financials (Based on purchasing power of Turkish Lira ("TL") as of 31 March 2024, the amounts are expressed in mn TL unless otherwise stated.) Financials (mn TL) 2023 Q1 2024 Q1 Diff. % • Due to improved distribution margins and Revenue 21,138 15,435 (27) inventory
Slide 35: Consolidated Financials
Consolidated Financials (Based on purchasing power of Turkish Lira ("TL") as of 31 March 2024, the amounts are expressed in mn TL unless otherwise stated.) Financials (mn TL) 2023 Q1 2024 Q1 Diff. % • Thanks to the positive contribution of the LPG and Natural Gas segment and the decrease in Revenue
Slide 36: Agenda
Agenda Aygaz at a Glance LPG and Natural Gas Segment Operations Other Business Segments Financial Highlights 2024 Q1 Updates Sustainability & ESG Topics Appendix 36 Bu doküman Kurum İçi olarak sınıflandırılmıştır. This document is classified as Internal.
Slide 37: Sustainability Efforts
Sustainability Efforts Member of Koç Group who has committed to be Carbon Neutral by 2050 in line with the European Green Deal. Policies adopted to further improve the Company’s compliance risk management and to comply with LPG, which has lower carbon emissions than other fossil fuels, is corporate
Slide 38: R&D Center
R&D Center Our R&D Center; while developing products and systems that will increase LPG usage and improve customer experience, it works on visionary and value-added solutions that will support the sustainability and digital transformation of our company. Practical Barbeque Demand Regulator GreenOdor
Slide 39: 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 40: 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 41: Corporate Governance & Credit Rating
Corporate Governance & Credit Rating Corporate Governance Rating June’23 Rating Score Main Sections: Avg. 96.57 Board of Directors 95.31 Stakeholders 99.51 Public Disclosure & Transparency 97.25 Shareholders 95.90 0 10 20 30 40 50 60 70 80 90 100 Source: SAHA Corporate Governance and Rating Services
Slide 42: Agenda
Agenda Aygaz at a Glance LPG and Natural Gas Segment Operations Other Business Segments Financial Highlights 2024 Q1 Updates Sustainability & ESG Topics 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 ✓ 5 filling plants, 7 dist
Slide 44: The LPG Value Chain
The LPG Value Chain ~300 1,830 auto gas stations tankers Moving&floating storage capacity of Fixed storage 37,000 m3 capacity of 178,400 m3 ~2,000 bulk gas customers 2.4 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 Shipping Marketing 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: Share Value
Share Value Aygaz Share Price Dividend (mn TL) Aygaz BIST-30 300 1,506 250 200 150 220 150 150 150 100 2019 2020 2021 2022 2023 50 BIST Code: AYGAZ 0 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Bloomberg Code: AYGAZ.TI • As of 2023 March-end, Aygaz's co
Slide 47: 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 48: Contact
Contact investorrelations@aygaz.com.tr Gökhan Dizemen, CFO gokhan.dizemen@aygaz.com.tr +90 212 354 1764 Ali Sencer Turunç, Finance, Investor sencer.turunc@aygaz.com.tr +90 212 354 1753 Relations and Strategy Director Kozan Nabi Çiftçi, Corporate Finance kozan.ciftci@aygaz.com.tr +90 212 354 1667 Man
Slide 49: 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 50: Disclaimer
Disclaimer • With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflationary accounting provisions.