Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz A.Ş. — Investor Presentation (June 2016)
32 slides from Aygaz Anonim Sirketi's investor presentation, June 2016
Slide 1: Aygaz Investor Presentation
AYGAZ INVESTOR PRESENTATION June 2016
Slide 2: Table of Contents
Table of Contents Aygaz A.Ş. Highlights Core Business: LPG distribution World LPG market Turkish LPG market Autogas and Cylinder markets Participation Portfolio Key Takeaways Financial Highlights Appendix Summary Financial Statements Glossary
Slide 3: AYGAZ Overview
AYGAZ Overview Leading LPG distributor of Turkey Shareholders • 2.1 m tons sales – 2015 Publicly • $2.4 b revenue – 2015 traded • 29% LPG market share 24.3% Diversified participation portfolio in energy; Koç Group 51.2% Natural Gas Refinery Power Generation Liquid Petroleum Gas Development Co. 2
Slide 4: Core Business – LPG Distribution
Core Business – LPG Distribution Generic brand for LPG Aygaz Volumes (000) tons 10th largest industrial company of Turkey with 55 years of history 865 668 707 Most preferred LPG brand in Turkey 554 620 589 since its foundation 578 604 621 662 688 777 Market leader with 3 brands 59 43 60 46 3
Slide 5: World LPG market
World LPG market World LPG Consumption (tons) World LPG Consumption By Sector 2014 7% 2014 275m 28% 2013 264m 2012 254m 2011 255m 44% 2010 246m 9% 2009 237m 2008 237m 11% 2007 233m 1% 2006 224m Chemical Autogas Industry 2005 218m Agriculture Domestic Refinery LPG as a Commodity World LPG Consumption
Slide 6: LPG Price
LPG Price 140 1.200 113 1.100 120 108 1.000 900 100 977 894 800 $/barrel $/ton 80 700 600 60 500 32 400 40 300 321 20 200 SP (Algeria) Petroleum (Brent) LPG prices declined to the lowest level in the 12 years, falling sharper than oil prices 4
Slide 7: Turkish LPG market ranking
Turkish LPG market ranking 1.5 m Turkey is the 5th 1.0 m 1.0 m 0.9 m biggest domestic LPG 0.8 m tons 0.5 m market in Europe Italy Russia France Spain Turkey Portugal 3.7 m 2.9 m 2.8 m 1.9 m 1.6 m 1.5 m 1.1 m Turkey is the 3rd tons biggest autogas market in the World *WLPGA Statistical Review of
Slide 8: Turkish LPG market
Turkish LPG market 4.3 • 3.7 m tons, #4 in Europe, #16 in Domestic Industry Transport 3.3 3.7 the World 2.1 • ~ 80 distribution companies m tons 1.4 1.4 1.6 0.9 • Serving; 0.4 • 7.5 m houses • 4.2 m cars • Liberal market with regulatory Evolving from cylinder to auto body-EMRA 76% 44% 1,551 2,838 1,
Slide 9: Market Players
Market Players Cylinder market shares 2016/March Autogas market shares 2016/March Other; 13% Other; 20% Petgaz; 0% Aygaz; 25% Akpet Gas; Aygaz; 3% Demirören; 42% 16% Total Gas; 4% OMV PO; BP Gas; 7% 12% SHV; 29% SHV; 8% Demirören; Shell Gas; 8% 13% Leading 3 players in the cylinder market and firs
Slide 10: Autogas Market
Autogas Market Turkish Autogas Consumption (m tons) 3,5 3.1 Steady growth since 2003 3,0 2,5 Most widely-used passenger 2,0 car fuel since 2009 1,5 1,0 0.4 With 4.2 million cars, 4 0,5 out of 10 passenger cars run 0,0 on LPG 2006 1999 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012
Slide 11: Autogas Conversions
Autogas Conversions 10,6 9,9 7,1 7,5 8,1 8,6 9,3 200,000 conversions per year m cars 3,9 4,1 4,3 3,3 3,7 2,6 3,0 1,000+ conversion points $500 average initial cost Passenger car park Autogas car park Source: Turkstat Payback in 15,000 km Ratio of cars registered to traffic acc. to fuel type 20
Slide 12: Autogas Market Shares
Autogas Market Shares Market Share & Station Number Share Total 3% 4% Long-term strategic partnership Akpet 4% 4% with Opet BP 4% 6% 6% Milangaz 8% Aygaz&Opet synergy leads Shell-Turcas 7% 12% autogas market İpragaz 8% 7% OMV PO 12% 14% Aygaz Opet 17% 25% Station number share Market Share EMRA d
Slide 13: Cylinder Market
Cylinder Market Cylinder Market (000) tons 60% market share in residential 979 890 market 842 801 816 12,300+ points of sale 393 382 359 342 343 Fully integrated production cycle; Gebze plant 2011 2012 2013 2014 2015 Domestic market Aygaz Cylinder sales contraction 4% 2% Growth signals for the
Slide 14: The LPG Value Chain
The LPG Value Chain Supplying 2 million tons of LPG Fixed storage Moving storage capacity of 4 LPG ships belonging to the fleet of capacity of 45,000 m3 1,750 auto 178,400 m3 via 23 Anadoluhisarı Tankercilik gas stations facilities 1,000,000+ vehicles using Aygaz Gebze Facility Euro LPG+ Exports of
Slide 15: Competitive Supply Chain
Competitive Supply Chain Big Player Advanced Model #1 purchaser in Mediterranean Direct imports to 6 different locations #1 importer in Turkey Most diversified supply portfolio in Turkey #1 FOB player in Black Sea Diversified supplier & origins #1 exporter in Turkey Diversified suppl
Slide 16: Participation Portfolio
Participation Portfolio Opet-Aygaz Akpa 100% Real Estate 50% Anadoluhisarı Entek 100% 50% Aygaz Natural EYAŞ* Gas 99% Aygaz %20 *EYAŞ owns 51% of the shares of TÜPRAŞ 14
Slide 17: Natural Gas
Natural Gas LNG Sales Sales Volume (mcm) 1,103 Pipeline Natural Gas Sales Transportation and 837 Started in 2010 regasification 366 2015 sales : ~800 mcm 219 300 industrial customers 55 Projects: 19% market share 141 128 125 94 92 LNG & Pipeline gas import 2011 2012 2013 2014 2015 2015 s
Slide 18: Turkey's Natural Gas Supply-Demand
Turkey’s Natural Gas Supply-Demand 80 Total Consumption 60-65 bcm 70 Additional Contract 60 Need 10-15 bcm 50 bcm 40 30 20 10 0 2014 2020 2010 2011 2012 2013 2015 2016 2017 2018 2019 2021 2022 2023 Contract Quantity Total Consumption Natural gas consumption of Turkey is expected to reach 60 bcm in
Slide 19: Natural Gas Import
Natural Gas Import European markets depend on flexible entry LNG is widely used to ensure supply diversity, capacities to manage interruptions and to supply security and flexibility in Europe ensure gas to gas competition LNG import is a hot topic not only to solve entry capacity issue but also fo
Slide 20: Other Participations
Other Participations Power Generation Sales and Marketing İzmit NGCC : 160 MW Direct sale of cylinder gas and carboy 3 hydro assets : 62 MW water throughout Turkey Kepezkaya HEPP (Karaman) 28 MW Fuel trade at its fuel stations Damlapınar HEPP (Karaman) 16 MW Sales of durable consumer g
Slide 21: Aygaz Key Takeaways
Aygaz Key Takeaways Financial Strength Brand Power Long- term Strategy Builder Consistent Market Diversifier & Leader Portfolio Investor Strong Sales & Logistics Network 19
Slide 22: Shareholder Value
Shareholder Value Continuous outperformer of BIST 30 Strengths Sustainable operating profitability from core BIST Code: AYGAZ business ; LPG Bloomberg Code: AYGAZ.TI Resistant to economic fluctuations and crises Reuters Code: AYGAZ.IS High dividend payments IPO Date: 13.01.1988 Corpo
Slide 23: Financial Highlights
Financial Highlights Sales Revenue Gross Profit and GPM 800 11% 11% 12% 7.061 10% 6.420 9% 6.005 9% 10% 5.456 5.586 600 7% 4.658 8% 400 6% 677 501 521 571 527 4% 200 478 2% 0 0% 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Gross profit Gross profit margin EBITDA and EBITDA Margin Net
Slide 24: Financial Highlights
Financial Highlights Working Capital Net Cash 253 186 276 110 182 159 126 184 232 213 248 267 297 151 390 120 367 483 265 299 304 (300) (251) (269) (376) (319) (372) 2010 2011 2012 2013 2014 2015 -65 2010 2011 2012 2013 2014 2015 Trade Payables Trade Receivables -204 -263 Inventory Working capital C
Slide 25: Disclaimer
Disclaimer This presentation 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 statements are reasonable, they may be affected by a variety of variables and c
Slide 26: Contacts
Contacts Ferda Erginoğlu, CFO E-mail: ferda.erginoglu@aygaz.com.tr Phone: +90 212 354 1764 Şebnem Yücel, Finance Manager E-mail: sebnem.yucel@aygaz.com.tr Phone: +90 212 354 1510 Selin Sanver, Investor Relations Manager E-mail: selin.sanver@aygaz.com.tr Phone: +90 212 354 1659 investor@aygaz.com.tr
Slide 27: Appendix
Appendix
Slide 28: Income Statement Summary
Income Statement Summary (m TRY) 2010 2011 2012 2013 2014 2015 Sales Revenue 4,658 5,456 5,586 6,005 7,061 6,420 COGS (4,156) (4,978) (5,065) (5,434) (6,534) (5,743) Gross Profit 501 478 521 571 527 677 Operating Profit 231 371 206 170 104 250 Profit Before Tax 283 419 345 237 237 458 Net Profit 239
Slide 29: Balance Sheet Summary
Balance Sheet Summary (m TRY) 2010 2011 2012 2013 2014 2015 Cash & Cash Eq. 262 254 125 173 161 289 Trade Receivables 265 299 304 367 390 483 Inventories 159 184 213 276 110 186 Investments 853 1,020 1,230 1,377 1,677 1,867 Prop. Plant & Eq. 475 573 595 589 585 651 Financial Debt (111) (2) (6) (238)
Slide 30: 2016/ 1Q Income Statement Summary
2016/ 1Q Income Statement Summary (million TL) Q1 16 Q4 15 Change % Q1 16 Q1 15 Change % Revenues 1,525 1,606 -5% 1,525 1,440 %6 Gross Profit 175 187 -7% 175 146 %20 Operating Profit 66 95 -30% 66 39 %68 Profit Before Tax 75 164 -54% 75 59 %26 Net Profit 65 146 -55% 65 53 %23 EBITDA 88 116 -25% 88 6
Slide 31: 2016/ 1Q Aygaz LPG Sales
2016/ 1Q Aygaz LPG Sales 700 600 581 501 492 483 469 500 241 400 213 210 239 211 (000) ton 300 200 239 191 190 171 157 100 8 7 8 9 9 78 89 94 83 78 0 cylinder bulk auto other Q1 sales volumes were realized as 171 thousand tons in Autogas (+9.4% YoY) 78 thousand tons in Cylinder Gas (+0.2% YoY)
Slide 32: Glossary
Glossary LPG: Liquid Petroleum Gas EMRA: Energy Market Regulatory Authority WLPGA: World LPG Association SP: Sonatrach Price (slide #4) PETDER: Petroleum Industry Association FOB: Free On Board CIF: Cost, Insurance & Freight Med: Mediterranean VLGC: Very Large Gas Carrier (slide#13) EYAŞ: Enerji Yat