Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — 9M 2014 Earnings Presentation
43 slides from Aksa Enerji Uretim A.s's earnings presentation, Jan 16, 2015
Slide 1: Aksa Enerji: The leading IPP in Turkey
Aksa Enerji The leading IPP in Turkey Earnings Presentation 16 January 2015
Slide 2: Disclaimer
Disclaimer Aksa Enerji Üretim A.Ş. ("Aksa Enerji") has prepared this presentation material (the “Document”) for the sole purpose of providing information, which includes opinions and estimates and certain forward looking projections and statements relating to Aksa Enerji, the Turkish electricity mar
Slide 3: Key investment highlights
Key investment highlights 1 Part of a dedicated energy group 2 Second largest Independent Power Producer (IPP) in Turkey 3 Strong exposure to growing Turkish electricity market 4 Large portfolio with 19 operational assets totalling 2,140 MW 5 Diversified pipeline of 10 projects adding 1,507 MW to ou
Slide 4: We are part of a dedicated energy group
We are part of a 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 ene
Slide 5: We are the second largest IPP in Turkey with 2,140MW installed capacity
We are the second largest IPP in Turkey with 2,140MW installed capacity IPPs by Installed Capacity 2.548 2.140 1.605 1.585 1.490 (MW) 1.288 952 745 410 365 Enerjisa Aksa Enerji İÇDAŞ Limak Eren Enerji Akenerji Cengiz Zorlu Enerji Bis Enerji AES Entek Source: Information obtained from each IPP’s annu
Slide 6: We provide strong exposure to the growing Turkish electricity market
We provide strong exposure to the growing Turkish electricity market 1 Strong Electricity Demand Growth (1) 2 Increasing per Capita Consumption (2) 500 TWh High CAGR – High Demand: 7.3% MWh/pa 450 431 Demand Scenario 9 400 8 350 Low 7 255 362 Demand 300 Scenario 6 250 CAGR – Low Demand: 5.0% CAGR: 5
Slide 7: We have 19 assets under operation across Turkey
We have 19 assets under operation across Turkey 17 KIYIKÖY 24 MW 1 2 3 AYVACIK AYRES ÇORUM-İNCESU SAMSUN 5 MW 15 MW 131 MW AKKÖY 19 13 MW 4 VAN 16 115 MW BALIKESİR KAPIDAĞ 24 MW 15 BALIKESIR ŞAMLI 114 MW Total 2,140 MW 14 MANISA KARAKURT 11 MW 13 MANISA 115 MW 18 SİİRT 24 MW 12 ANTALYA ŞIRNAK 5 1,15
Slide 8: Each of our assets has key specifications to fortify our strategy
Each of our assets has key specifications to fortify our strategy A D Baseload Natural Gas Fired PP – Antalya Wind Farms Located in a favorable wind corridor with high load factors One of the most efficient CCGT plants in Turkey, with 7 farms, with a total capacity a capacity of 1,150 MW with
Slide 9: We have a diversified pipeline of 10 projects adding 1,507 MW
We have a diversified pipeline of 10 projects adding 1,507 MW to our portfolio Current Installed Total Installed Pipeline Capacity Capacity 1,507 MW 3,647 MW 85 MW 1,053 MW Hydro 147 MW 175 MW Wind 49 MW 288 MW Lignite 270 MW 270 MW Natural Gas 1,041 MW 369 MW 2,140 MW (1) 2.681 MW 6 3 1 10 1 Hydro
Slide 10: Significant cost improvement with renewables and lignite fired PP pipeline
We target to create significant cost improvement with our renewables and lignite fired PP pipeline Targeted Capacity Increases in Renewables & Lignite (MW) MW MWh (+) 62 MW Hydro 10% 12% 26% Further 700 4000 (+) 13 MW Hydro (already oper.) pipeline of (+) 85 MW 62 3500 (+) 49 MW Wind 600 13 hydro &
Slide 11: Utilizing own generation and sourcing capabilities to supply customers
We are utilizing our own generation as well as sourcing capabilities to supply our customers Cost Structure vs. Sales Price (9M 2014) Improving Lower Cost Output % of TL/MWh 175 448 Renewables 20% 18% &Sourcing 320 311 7,591 GWh 31 6,709 GWh 280 Average Cost: 141 240 200 159 160 9 280 120 82 70 80 1
Slide 12: Our sales mix is getting more diversified and secure
Our sales mix is getting more diversified and secure, increasing our capacity utilization Capacity Utilization 44% 61% 8 TWh 7.6 TWh Balancing Market 7 Northern Cyprus Sales 6 Wholesale Bilateral to BSM 2.16 BSM 28% Retail Bilateral 5 4.2 TWh 4 3 3.6 Total 5.43 Contracted 72% 86% BSM 3.6 2 Contracte
Slide 13: Shifting bilateral mix towards more profitable commercial clients
At the same time, we are shifting bilateral mix towards more profitable commercial clients Increasing Contracted Volume Supported by Evolution of Eligibility Limit Affiliated Distribution Regions 64x 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 # of Bilateral Customers (2) 245 61
Slide 14: Increased CCGT efficiencies and cut opex to improve cost base
We have successfully increased efficiencies of our CCGT plants and managed to cut our opex to improve our cost base 1 Low Unit Capex 3 Improving Fuel Efficiency US$m/MW US$/MWh 95 312 305 287 403 60% CCGT 0,4 90 89 54% 55% (1) Lignite 1,3 83 50% 76 Wind 1,4 77 74 70 71 44% Hydro 2,2 41% 65 40% 0,0 0
Slide 15: Tailored strategy to create sound and secure profitability
Tailored strategy to create sound and secure profitability Evolution of Capacity and Sales Mix Sales Mix Total Contracted (1) Total Contracted (1) 3,647 MW 14% Shifting strategy 29% Fortify baseload Lignite to become baseload strategy & build cost Hydro producer 71% effective pipeline Wind Total Spo
Slide 16: The Sector
The Sector
Slide 17: Market Highlights- Generation & Consumption
Market Highlights- Generation & Consumption Generation (GWh) 259.000 ►On a yearly basis, electricity generation was 254.000 249.000 up by 4.6% YoY. 244.000 ►Electricity generation in 4Q14 increased by 239.000 234.000 2.5% YoY. 229.000 224.000 219.000 214.000 Consumption (GWh) 2011 2012 2013 2014 259
Slide 18: Market Highlights- Generation by type
Market Highlights- Generation by type Generation by type 2013 vs 2014 Wind 3% Fuel-Oil Hydro 2% 16% Wind Fuel-Oil Lignite & Coal 3% 2% 29% Other 2% Hydro 25% Lignite & Coal 25% Other 1% Natural gas Natural gas 48% 44% Inner circle: 2013 Outer Circle: 2014 ►Source of electricity generation in 2014 ch
Slide 19: Market Highlights- Installed Capacity
Market Highlights- Installed Capacity ►Natural gas, followed by hydro capacities continue to dominate the market. ►The installed capacity has gone up by 9% YoY in 2014. MW Installed Capacity Installed Capacity Breakdown 30.000 25.550 23.641 Hydro; 34% 25.000 20.000 14.636 15.000 10.000 Natural gas;
Slide 20: Market Highlights- Installed Capacity
Market Highlights- Installed Capacity ►Total installed capacity in Turkey has increased by 5,000 MW YoY to 69,516 MW, with the majority coming in from coal&lignite and Capacity Changes (2014 vs 2013) MW hydro. Fossil Renewable 2.208 ►YoY, there was an increase of 2,208 MW in 2.250,0 2.000,0 coal&lig
Slide 21: Market Highlights- Prices
Market Highlights- Prices Weighted Average Price (TL) ►Prices – Weighted average prices were 180,0 176 173 175,0 strong in 2014, due to the drought preventing 170,0 166 a significant contribution from the 165,0 162 160 160,0 158 hydroelectric power plants and the increase in 155,0 150,0 147 demand.
Slide 22: 9M 2014
9M 2014
Slide 23: 9M 2014 Results- Snap Shot
9M 2014 Results- Snap Shot * YoY QoQ YoY YoY 2012 2013 Change Q2 2014 Q3 2014 Change Q3 2013 Q3 2014 Change 9M 2013 9M 2014 Change Installed Capacity (MW) 2.045 2.052 7 MW 2.066 2.127 61 MW 2.052 2.127 75 MW 2.052 2.127 75 MW Sales Volume (GWh) 9.784 9.109 -7% 2.298 2.835 23% 2.570 2.835 10% 6.709 7
Slide 24: Sales breakdown (MWh)
Sales breakdown (MWh) 3Q 2014 vs 2Q 2014 3Q 2014 MW 2Q 2014 MW Renewable Market Renewable Market BSM 1% 2% 36% BSM 11% Regional Sales Regional Sales 3% 1% Northern Cyprus 7% Northern Cyprus Bilateral 6% Agreements 52% Affiliated DisCos 1% Bilateral Agreements Affiliated DisCos 76% 4% -Bilateral sale
Slide 25: Sales breakdown (TL)
Sales breakdown (TL) 3Q 2014 vs 2Q 2014 Renewable Market 3Q14 TL 2Q 2014 TL 0% BSM BSM 7% Renewable Market 39% 1% Regional Sales 3% Regional Sales 11% Northern Cyprus 15% Northern Cyprus 10% Affiliated DisCos Bilateral Agreements Affiliated DisCos 4% 38% 1% Bilateral Agreements 71% -Bilateral sales
Slide 26: Company Highlights- 9M 2014 Production & Sales
Company Highlights- 9M 2014 Production & Sales ► In 9M14, net sales of the Company has increased by 13% YoY from 6,709 GWh to 7,591 GWh due to the increase in electricity demand, which is coming from a low base and the increase in bilateral agreements. ► 5.43GWh of electricity was sold on a contract
Slide 27: Company Highlights- 9M 2014 Production & Sales
Company Highlights- 9M 2014 Production & Sales ► Capacity utilisation rate has increased by 6 ppts to 61% in 9M14 YoY and by 5ppts compared to YE2013, as the increase in bilateral sales enables the Company to better project future production need and hence help increase the CUR. ► Strong operating p
Slide 28: Company Highlights- Power plants
Company Highlights- Power plants ► Kıyıköy WPP’s provisional ministry acceptance was completed in August 2014, whereby 24MW was added to the generation portfolio. ► Akköy HPP’s (13MW) transfer to Aksa Enerji from Kazancı Holding was approved by EMRA at the end of August. ► Construction of Sebenoba W
Slide 29: Bolu lignite power plant to be fully operational in 2015
Company Highlights- Bolu lignite power plant to be fully operational in 2015 ► The construction of Bolu/Göynük lignite fired power plant, which started on 13 July 2012, continues as planned. This plant will have an installed capacity of 270MW and will be fully operational in 2015. ► This plant will
Slide 30: Company Strategy Going Forward
Company Strategy Going Forward ► The company’s strategy is to increase its local and renewable resources within its production portfolio to decrease its cost base. ► To this end, we are more focused on creating new greenfield lignite fired power plant projects. We are in discussions for 3 new lignit
Slide 31: Catalysts and Key Events- Bolu Göynük Lignite PP
Catalysts and Key Events- Bolu Göynük Lignite PP 1st Phase Near Completion ► An installed capacity of 270MW ► SES CFB boilers & Skoda turbines ► To be fully operational in June 2015. ► CAPEX: $350mn ► Annual production volume of 2bn KWh ► Cost of production: TRY 70 ► EBITDA margin of 55% ► Significa
Slide 32: Catalysts and Key Events- Bolu Göynük Lignite PP
Catalysts and Key Events- Bolu Göynük Lignite PP ► On-site lignite mine ► Open pit ► Owned and operated by Aksa Enerji ► Sufficient supply of coal for the life time of the lignite PP ► Calorific value: 2400 kcal/ton ► Mine being operated for the last 5 yrs ► Coal being stored now for first fire 31
Slide 33: Financial highlights 9M 2014 Consolidated income statement
Financial highlights 9M 2014 Consolidated income statement Net sales & EBITDA (TL mn) 1.510 599 EBITDA Margin EBITDA Margin 3Q14: 24.7% 1.329 9M14: 18.3% 537 3Q13: 20.9% 9M13: 18.0% 148 112 240 276 Net Sales EBITDA Net Sales EBITDA 3Q13 3Q14 9M13 9M14 Operating income & Net income (TL mn) 183 115 15
Slide 34: Net financial debt and repayment schedule
Financial highlights 9M 2014 Net financial debt and repayment schedule Net financial debt (TL mn) 1.800 1.688 64% 61% 1.600 62% 1.400 1.280 1.306 60% 1.138 1.270 1.200 60% 58% 1.000 56% 800 54% 55% 55% 600 52% 400 52% 50% 200 48% - 46% 2010 2011 2012 2013 9M14 6.0 4.2 4.0 4.2 4.8 Net Financial Debt
Slide 35: Financial Highlights 9M 2014
Financial Highlights 9M 2014
Slide 36: Consolidated income statement
Consolidated income statement (TLm) 2010 2011 2012 2013 9M 2013 9M 2014 3Q 2013 3Q 2014 Net sales 911,9 1315,4 1840,6 1786,0 1328,6 1509,8 536,7 599,4 Cost of sales -775,5 -1088,0 -1604,0 -1565,9 -1156,6 -1308,6 -448,5 -477,1 Gross profit 136,4 227,4 236,6 220,1 172,0 201,2 88,2 122,3 Gross profit m
Slide 37: Consolidated balance sheet
Consolidated balance sheet (TL mn) Assets 2010 2011 2012 2013 9M 2013 9M 2014 Cash and cash equivalents 78,3 110,5 40,6 22,3 24,2 19,5 Trade receivables net 113,0 261,5 245,9 142,3 253,5 27,8 Due from related parties and shareholders 607,9 360,0 593,9 0,0 0,0 0,5 Inventory 81,3 121,5 135,5 250,0 188
Slide 38: Consolidated statement of cash flows
Consolidated statement of cash flows (TLmn) 2010 2011 2012 2013 9M 2013 9M 2014 Net income (loss) before tax 84,7 -116,5 226,5 -156,1 -60,6 56,8 Depreciation and amortisation 71,7 92,5 105,3 111,8 81,2 89,7 Other adjustments 14,7 231,2 -53,1 193,9 173,5 43,0 Change in w orking capital 18,64 -20,3 -1
Slide 39: Appendix
Appendix
Slide 40: Operating (Current)
Operating (Current) Power Plant License Owner Fuel Type Installed Capacity (MW) % Mardin-1 Aksa Energy Fuel-oil 32 Mardin-2 Rasa Elektrik Fuel-oil 33 Northern Cyprus Aksa Cyprus Fuel-oil 120 İdil (Şırnak) İdil İki Energy Fuel-oil 24 Siirt Siirt Akköy Fuel-oil 24 Total Fuel-Oil fired power plants 233
Slide 41: Ongoing Investments and Revised Licence Portfolio
Ongoing Investments and Revised Licence Portfolio Planned Acquisitions from Kazancı Holding Power Plant Investment License Owner Fuel Type Additional Capacity (MW) Completion Year Planned acquisition from Kazancı Holding: Datça Licenced Kazancı Holding Wind 12 2015 Datça 12 MW wind farm licence
Slide 42: Turkish power market
Turkish power market Installed Capacity by Fuel Annual Installed Capacity Increases GW CAGR GW 23.2 80 8.8% 18 69.5 70 16 64.0 57.1 14 11.5 60 52.9 52% 40% 27,7 12.6% 49.5 12 50 44.8 25,0 41.8 22,0 10 34% 19,0 6.8 40 17,2 8 14,2 15,4 4.7 4.3 30 6 3.4 11.7 2.9 6.7% 4 3.0 48% 20 39,0 41,8 1,8 32,3 33,
Slide 43: Contact- Investor Relations
Contact- Investor Relations Özlem McCann IR Manager Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Selvi Çıkmazı No:10 Kavacık Beykoz, Istanbul 42
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