Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... EARNINGS PRESENTATION FY2017 14 MARCH 2018 P O W E R B E Y O N D B O R D E R S
Slide 2: Turkish Market
TURKISH MARKET
Slide 3: YE2017 – Key Figures
MARKET HIGHLIGHTS Total installed capacity in Turkey has reached 83,275 MW in YE2017, YE2017 – Key Figures an increase of 4,611 MW YoY. INSTALLED CAPACITY (2017) GENERATION BY FUEL TYPE Fuel-Oil Other Fuel-Oil Other 1% 3% 1% 4% Wind Hydro Wind 6% 20% 8% Hydro 33% Lignite&Coal 21% Lignite&Coal 32% Na
Slide 4: YE2017 – Installed Capacity Changes
MARKET HIGHLIGHTS YE2017 – Installed Capacity Changes YE2017 – YE2016 CAPACITY CHANGES When new and 2.500,00 decommissioned capacities are Fossil Renewable netted off, there is an increase 2.000,00 1.929 of 1.081 MW in wind, 697 MW in hydro, 630 MW in 1.500,00 coal&lignite, 348 MW in natural 1.081 1
Slide 5: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption Electricity generation increased by 8% and consumption by 5% YoY in 2017. GENERATION (GWh) CONSUMPTION (GWh) 290.546 275.154 289.975 270.194 2016 2017 2016 2017 5
Slide 6: Prices
MARKET HIGHLIGHTS Prices 200 188 184 178 180 177 178 180 168 Weighted average spot price was TRY 168 in 156 151 160 148 148 158 2017, 15% higher than 2016 (TRY 146) due to: 140 • 2016 setting a very low base (mild weather 120 & very strong renewable production) 100 • Natural gas consumption limitati
Slide 7: Financial & Operational Highlights FY 2017
FINANCIAL & OPERATIONAL HIGHLIGHTS FY 2017
Slide 8: FY 2017 Results Sales Breakdown (Turkey+N.Cyprus)
FINANCIAL HIGHLIGHTS FY 2017 Results Sales Breakdown (Turkey+N.Cyprus) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern Cyprus 179,631 378 175,906 388 176,615 380 175,897 431 708,050 394 Renewable Market 192,332 266 112,655 272 116,784 263
Slide 9: FY 2017 Results Snap Shot
FINANCIAL HIGHLIGHTS FY 2017 Results Snap Shot 1Q 2017 2Q 2017 3Q 2017 4Q 2017 QoQ Change FY 2016 FY 2017 YoY Change Installed Capacity (MW) 2,104 MW 2,211 MW 2,377 MW 2,236 MW -141 MW 2,109 MW 2,236 MW 127 MW Sales Volume (GWh)* 4,676 3,764 4,204 4,310 3% 18,028 16,954 -6% Net Sales (TRY mn) 738 87
Slide 10: FY 2017 Results Sales Breakdown
FINANCIAL HIGHLIGHTS FY 2017 Results Sales Breakdown 9M 2017 4Q 2017 FY 2017 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET (Inc. N.Cyprus) 12,644,181 169 4,309,588 173 16,953,769 170 AFRICAN MARKET 591,853 661 371,979 757 963,832 698 TOTAL 13,236,034 247 4,681,567 219 17,917,601 199 10
Slide 11: FY 2017 Results Regional Breakdown
FINANCIAL HIGHLIGHTS FY 2017 Results Regional Breakdown EBITDA (TRY mn) REVENUES (TRY mn) 674 126 367 2.925 TURKEY+N.CYPRUS AFRICA TURKEY+N.CYPRUS AFRICA 11
Slide 12: FY 2017 Results Regional Breakdown
FINANCIAL HIGHLIGHTS FY 2017 Results Regional Breakdown EBITDA (TRY mn) 163 Ghana PP became operational in March 2017, therefore a very small revenue contribution is 134 seen in 1Q17 while no positive contribution took place at the EBITDA level. 73 -2,9 1Q2017 2Q2017 3Q2017 4Q2017 AFRICA 12
Slide 13: Consolidated Income Statement Highlights FY 2017
FINANCIAL HIGHLIGHTS Financial Highlights FY 2017 Consolidated Income Statement NET SALES & EBITDA (TRY MN) 3.599 EBITDA Margin 3.178 EBITDA Margin 4Q16: 9.4% FY16: 13.7% 4Q17: 15.6% FY17: 13.7% 966 1.034 493 435 91 161 Net Sales EBITDA Net Sales EBITDA 4Q16 4Q17 FY16 FY2017 OPERATING INCOME & NET I
Slide 14: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights FY 2017 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 3.500 90% 100% 86% 89% 88% 90% 3.000 76% 80% 2.500 62% 70% 62% 60% 2.000 2.742 3.086 3.299 3.096 2.984 50% 1.500 2.777 40% 1.781 1.000 30% 20% 500 10% 0 0% 2014 2015 2016 1Q17 2Q17 3
Slide 15: 2018 Guidance
2018 GUIDANCE
Slide 16: 2018 Guidance
FINANCIAL HIGHLIGHTS 2018 GUIDANCE 2018 EBITDA BREAKDOWN 2018 EBITDA GUIDANCE (TRY) • SALES: 11.3 TWh • REVENUES: TRY 3.4 bn 24% • CAPEX*: TRY 120 mn • EBITDA**: TRY 840 mn 840 642 76% 198 TURKEY+N.CYPRUS AFRICA TURKEY+N.CYPRUS AFRICA TOTAL * Includes maintenance CAPEX in Turkey and Africa and the 9
Slide 17: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY mn) 31/12/2014 31/12/2015 31/12/2016 31/12/2017 1Q2017 2Q2017 3Q2017 4Q2017 Net sales 1,957.4 2,306.7 3,178.2 3,599.3 738.4 874.6 952.4 1,033.9 Cost of sales -1,710.8 -1,979.5 -2,907.2 -3,284.0 -714.7 -824.1 -814.4 -930.8 Gross profit 246.6 327
Slide 18: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS 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 31.12.2017 Cash and cash equivalents 78.3 110.1 40.6 22.3 34.2 48.5 219.4 59.6 Trade receivables net 113 261.5 245.9 142.3 88.7 119.8 219.7 759.6 Due from rela
Slide 19: Consolidated Statement of Cash Flow
FINANCIAL HIGHLIGHTS Consolidated Statement of Cash Flow (TRY mn) 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 Net income (loss) before tax 69.4 -122 226.5 -156.1 26.6 -221.1 -367.6 290.2 Depreciation and amortisation 71.7 92.5 105.3 111.8 121.5 146.6 191.2
Slide 20: Asset Sale
a 4 S a ENERGY
Slide 21: 355 MW Asset Sale – USD 411,6 mn
ASSET SALE 355 MW Asset Sale – USD 411,6 mn The cash proceeds are used for decreasing the COMPLETED short term liabilities. 96 MW HEPP & 259 MW WPP Kozbükü, Sebenoba, Karakurt, Ayvacık, Kapıdağ, Belen/Atik, Kıyıköy, Şamlı, İncesu 2016: $89 mn 2017: $286 mn 2018: $15 mn 2018: $36,6 mn* TOTAL: $411,6m
Slide 22: Operational Assets – Current Total 1,835 MW
OPERATIONAL ASSETS 5 assets under operation CURRENT across Turkey and Northern Cyprus TOTAL Bolu-Göynük 1,835 MW 270 MW Natural Gas (3 plants) 1,412 MW 64% Fuel-Oil (1 plant) 153 MW 7% Lignite (1 plant) Manisa 270 MW 12% 115 MW Şanlıurfa Antalya 147 MW 1,150 MW Northern Cyprus 153 MW 22
Slide 23: Operational Assets Africa – Current Total 386 MW
OPERATIONAL ASSETS 3 assets under operation CURRENT across Africa TOTAL Aksa Energy’s installed 386 MW capacity in Africa will reach 530 MW once the power plants reach full capacity. Ghana HFO Power Plant became operational at the end of March with 192.5 MW and reached 280 MW at the beginning of Aug
Slide 24: Appendix
APPENDIX
Slide 25: Operational Assets
Operational Assets 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 24% Antalya NGCC Aksa Energy Natural Gas 1.15
Slide 26: Ongoing Investments
Ongoing Investments 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 Total 144 The above projects are utilising mostly existing equipments from Şırnak, Hakkari, Mardin 1, Mardin 2,
Slide 27: 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
Slide 28: Disclaimer
Disclaimer Aksa Energy 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