Aksa Enerji Uretim A.s. · BIST:AKSEN

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

46 slides from Aksa Enerji Uretim A.s's investor presentation, Sep 16, 2017

  1. Slide 1: Investor Presentation 16 September 2017

    Investor Presentation 16 September 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 Wind Natural Gas Fuel-Oil Lignite Hydroelectric (2 farms) (3 plants) (4 plants) (1 p

  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 Current Total 30 MW will be 356 MW commissioned this m

  6. Slide 6: Pipeline of 3 international projects adding 174 MW

    Pipeline of 3 international projects adding 174 MW to our portfolio Current Installed Total Installed Pipeline Capacity Capacity 174 MW -141 MW 2.380 MW 2,347 MW 15 15 141 270 270 1.412 1.412 683 509 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: 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

  16. Slide 16: Mali – Operational since August 2017

    Mali – Operational since August 2017 Picture as at June 2017 16

  17. Slide 17: 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

  18. Slide 18: Turkey & Africa

    TURKEY & AFRICA African PPs will be making up 77% of EBITDA in 2017 EBITDA TURKEY AFRICA 18

  19. Slide 19: Asset Sale

    ASSET SALE

  20. Slide 20: 340 MW Asset Sale – USD 409 mn

    340 MW Asset Sale – USD 409 mn 81 MW HEPP 259 MW WPP Kozbükü Sebenoba, Karakurt, Şamlı, Ayvacık, Kapıdağ, (completed in 4Q 2016) Belen/Atik, Kıyıköy USD 89 mn USD 298 mn (plus $21.6mn additional) USD 55 mn bank loans paid off USD 159 mn bank loans to be paid off Out of 259 MW WPP sale, five (118 MW)

  21. Slide 21: 2017 Guidance

    2017 GUIDANCE

  22. Slide 22: EBITDA Composition (USD mn)

    EBITDA COMPOSITION (USD mn) 2016 2017E 2018E 275 80 140 144 18 32 10 2016 TURKEY & N.CYPRUS MALI MADAGASCAR GHANA 2017E 2018E 22

  23. Slide 23: 2017 & 2018 Guidance

    2017 & 2018 GUIDANCE USD mn EBITDA 275  SALES: 17 TWh 300,0 250,0 96%  REVENUES: TRY 2.5 bn ($695 mn) 200,0 157 163 144 140 150,0  CAPEX: TRY 293 mn ($78 mn) 100,0  2017E EBITDA: TRY 504 mn ($140 mn) 50,0 0,0  2018E EBITDA: USD 275mn 2014 2015 2016 2017E 2018E 23

  24. Slide 24: 2017 Guidance – Improvement in Debt Ratio

    2017 Guidance – Improvement in Debt Ratio Solid EBITDA growth achieved via USD mn African PPs along with financial 1.200 6,31 7,00 debt reduction via asset sale 6,05 6,19 6,00 results in: 1.000 5,18 4,65 4,22 4,19 5,00 800 3,96  Sharp decline in net 600 4,00 financial debt by YE2017 1.008 908 3,00

  25. Slide 25: 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

  26. Slide 26: Share Performance – EV/EBITDA peers

    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 26

  27. Slide 27: Potential Opportunities for 2018 and Beyond

    POTENTIAL OPPORTUNITIES FOR 2018 AND BEYOND 27

  28. Slide 28: Financial & Operational Highlights 1H 2017

    FINANCIAL & OPERATIONAL HIGHLIGHTS 1H 2017

  29. Slide 29: 1H 2017 Results - Snap Shot

    1H 2017 Results - Snap Shot * 1Q 2017 2Q 2017 QoQ 2Q 2016 2Q 2017 YoY 1H 2016 1H 2017 YoY Installed Capacity (MW)* 2.104 MW 2.426 MW 322 MW 2.198 MW 2.426 MW 228 MW 2.198 MW 2.426 MW 228 MW Sales Volume (GWh)** 4.203 4.237 0,8% 3.886 4.237 9,0% 7.647 8.440 10,4% Net Sales (TL mn) 738 875 18,5% 576 8

  30. Slide 30: 1H 2017 – Sales Breakdown (excl. Africa)

    1H 2017– Sales Breakdown (excl. Africa) * 1Q 2017 2Q 2017 1H 2017 MWh TL/MWh MWh TL/MWh MWh TL/MWh Northern Cyprus 179.631 378 175.906 388 355.537 383 Renewable Market (YEKDEM) 192.332 266 112.655 272 304.987 268 BSM (Spot Market Sales)* 886.272 184 984.011 172 1.870.283 178 Affiliated DisCos 821.69

  31. Slide 31: Financial highlights 1H 2017 Consolidated income statement

    Financial highlights 1H 2017 Consolidated income statement Net sales & EBITDA (TL mn) Operating income & Net income (TL mn) 31 Source:IFRS financial statements

  32. Slide 32: Financial highlights 1H 2017 Net financial debt and repayment schedule

    Financial highlights 1H 2017 Net financial debt and repayment schedule Net financial debt (TL mn) 89% 88% 85% 3.500 90% 76% 3.000 80% 61% 62% 70% 2.500 55% 55% 52% 60% 2.000 50% 1.500 2.985 40% 2.742 2.744 2.728 30% 1.000 1.781 20% 1.138 1.271 1.280 1.306 500 10% - 0% 2010 2011 2012 2013 2014 2015 2

  33. Slide 33: 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 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 Cost of sales -775,5 -1.088,0 -1.604,0 -1.565,9 -1.710,8 -1.979,5 -2.907,2 -714,7 -1

  34. Slide 34: 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 Cash and cash equivalents 78,3 110,1 40,6 22,3 34,2 48,5 219,4 6,0 199,5 Trade receivables net 113,0 261,5 245,9 142,3 88,7 119,8 219,7 262,9 337,5 Due from r

  35. Slide 35: Consolidated statement of cash flows

    Consolidated statement of cash flows (TRY mn) 31.12.2010 31.12.2011 30.09.2012 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.03.2017 30.06.2017 Net income (loss) before tax 69,4 -122,0 206,2 226,5 -156,1 26,6 -221,1 -367,6 -88,4 -85,0 Depreciation and amortisation 71,7 92,5 77,5 105,3 11

  36. Slide 36: Turkish Market

    TURKISH MARKET

  37. Slide 37: The largest quoted IPP in Turkey

    The largest quoted IPP in Turkey IPPs by Installed Capacity 3.600 3.145 2.347 (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

  38. Slide 38: Turkey - Key Figures

    TURKEY- Key Figures Installed Capacity 2003 Installed Capacity 1H2017 IPPs; 62% BOT, TOR,BOO; EUAS; 55% 24% BOO, BOT, TOR; 11% IPPs; 8% Others; 1% Auto Producers; 13% EUAS; 26% Generation 2003 Generation 1H2017 IPPs; 62% BOT, TOR,BOO; 37% EUAS; 45% BOT, IPPs; 2% TOR,BOO; Auto Producers; 16% 11% EUAS

  39. Slide 39: Market Highlights - 8M Key Figures

    Market Highlights- 8M Key Figures Total installed capacity in Turkey has reached 80.460 MW in 8M 2017, an increase of 1.471 MW. Generation by Fuel Type Hydro; 34% Hydro; 26% Other; 2% Wind; 4% Fuel-Oil; 2% Installed Capacity Wind; 8% 80.460 MW Others; 4% Natural Gas; Fuel-oil; 1% 32% Natural gas; Li

  40. Slide 40: Market Highlights - Consumption

    Market Highlights- Consumption  Electricity consumption increased by 5% YoY in 8M2017. Consumption (GWh) 250.000 193.550 200.000 184.227 175.658 150.000 100.000 50.000 0 8M 2017 8M 2016 8M 2015 40

  41. Slide 41: Market Highlights – Prices

    Market Highlights – Prices Weighted average spot price was 166 TL in 8M 2017, 23% higher than 8M 2016 due to:  8M 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

  42. Slide 42: Appendix

    APPENDIX

  43. Slide 43: 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 10 Madagascar Aksa Energy Fuel-oil 66 Total Fuel-Oil fired power plants 509 22% Antalya NGCC Aksa Energy Nat

  44. Slide 44: Ongoing Investments

    Ongoing Investments Under Construction Power Plant Investment License Owner Fuel Type Capacity (MW) Completion Year Ghana Greenfield Aksa-Ghana HFO 90 2017-2018 Madagascar Greenfield Aksaf Power HFO 54 2017-2019 Mali Greenfield Aksa HFO 30 2017 174 Total 174 The above projects are utilising mostly e

  45. Slide 45: 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 45

  46. Slide 46: 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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