Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Investor Presentation (May 2022)
48 slides from Aygaz Anonim Sirketi's investor presentation, May 18, 2022
Slide 1: May 2022
May 2022 Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 2: Content
CONTENT A Overview G Other participations B World LPG market H Financial highlights C Turkish LPG market & Aygaz I Appendix D The LPG value chain J Glossary E Participation portfolio K Disclaimer F Natural gas L Contacts Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Pub
Slide 3: A Aygaz overview
3 A Aygaz overview 2021 15.9 billion REVENUE 2.2 m tons SALES OF LPG LEADING 25.4%* LPG MARKET SHARE LPG DISTRIBUTOR * EMRA Dec-2021 of TURKEY NATURAL GAS REFINERY DIVERSIFIED PARTICIPATION PORTFOLIO IN ENERGY POWER GENERATION Bu doküman Genel olarak sınıflandırılmıştır. This document is classified
Slide 4: Overview
4 > Overview SUMMARY FINANCIALS (Cons. In m TL) 2021 2020 2019 2021-2020 Change Revenue 15,893 10,145 10,211 57% EBITDA** 705 444 492 69% Net Profit* 670 -25 273 - EBITDA Margin 4% 4% 5% - Net Profit Margin 4% -0.2% 3% 4 SHAREHOLDERS (%) Volume (000 tons) 2,245 2,150 2,068 4% As of 31/03/2022 * Pare
Slide 5: Core business - LPG distribution
5 > Core business - LPG distribution Generic brand for LPG 27th largest industrial company of Turkey, as of 2020 Most preferred LPG brand in Turkey since its foundation Market leader with 3 brands AYGAZ VOLUMES (000 tons) MARKET SHARES (%) 1.025 1.158 1.253 907 993 21.5 41.1 759 730 734 664 669 35 3
Slide 6: B World LPG market
6 B World LPG market WORLD LPG CONSUMPTION (m tons) 2020 317 2019 325 • Despite the consistent growth for a 2018 315 decade, global LPG demand contracted by 2017 302 2.6% YoY in 2020 due to pandemic effects. 2016 299 2015 279 • 300 billion USD business size worldwide 2014 272 • Sources of LPG produc
Slide 7: World LPG consumption
7 > World LPG consumption World LPG Consumption World LPG Consumption By Sectors (%) By Regions (%) 44 46 Asia Pasific Domestic 1 28 4 15 Agriculture Chemical Africa North America 9 10 9 16 Refinery Industry S.&C. America Europe&Eurasia 8 10 Autogas Middle East WLPGA Statistical Review of Global LP
Slide 8: Prices of LPG and brent
8 > Prices of LPG and brent 125 851 900 100 661 720 750 119 493 600 75 67 538 75 74 $/varil $/ton 407 450 375 65 73 50 437 248 330 300 41 50 25 40 150 32 0 0 SP (Algeria) Petroleum (Brent) • There is a correlation between LPG and oil price • Seasonality can also affect LPG price • March 2022 Sonatra
Slide 9: C Turkish LPG market
9 C Turkish LPG market LPG consumption in Europe (m ton) 3.9 m tons #2 in Europe #10* in the World RUSSIA 4.4 ~90 distribution companies TURKEY 3.9 Leading 3 players in the cylinder market and first 8 players in the autogas market hold over ITALY 2.9 80% of the total market POLAND 2.2 Liberal market
Slide 10: LPG market ranking
10 > LPG market ranking 1- ITALY 1.4 m tons 2- RUSSIA 0.9 m tons 3- SPAIN 0.9 m tons 4- FRANCE 0.9 m tons 5- TURKEY 0.7 m tons THE 5th BIGGEST DOMESTIC LPG MARKET IN EUROPE 1- RUSSIA 3.2 m tons 2- TURKEY 3.1 m tons 3- SOUTH KOREA 2.7 m tons 4- UKRAINE 1.9 m tons 5- POLOND 1.7 m tons THE SECOND BIGGE
Slide 11: Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 12: Cylinder market starting to stabilize
12 > Cylinder market starting to stabilize CYLINDER MARKET RATES OF CHANGE (YoY) %4 Turkish 812 %2 market 750 729 0 718 699 -%2 (000 tons) -%4 -%6 Aygaz 335 -%8 315 302 -%10 297 287 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 TURKISH MARKET AYGAZ General factors affecting cylinder market; • Pr
Slide 13: Leader of cylinder LPG market
13 > Leader of cylinder LPG market CYLINDER MARKET SHARES • Generic brand AYGAZ 41.1% • Market maker • Largest dealer network with high sales efficiency İpragaz 29.9% • 60% market share in residential use Oyak Group* 18.1% • Fully integrated production cycle; Cylinder Other 10.9% and gas appliances
Slide 14: Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 15: World's 2nd biggest autogas market
15 > World’s 2nd biggest autogas market AUTOGAS MARKET RATES OF CHANGE (YoY) %6 3.354 %4 Turkish 3.283 3.117 3.114 %2 market 3.065 0 -%2 (000 tons) -%4 759 -%6 Aygaz 730 734 -%8 -%10 664 669 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 TURISH MARKET AYGAZ Factors affecting autogas market; • 30%
Slide 16: Autogas; most widely-used passenger car fuel of Turkey
16 > Autogas; most widely-used passenger car fuel of Turkey RATIO OF CARS REGISTERED TO TURKISH CAR PARK (m cars) TRAFFIC ACC. TO FUEL TYPE 4,8 5,0 5,0 4,6 4,7 4,7 4,8 4,8 %39 4,3 4,6 %75 %5 3,1 3,1 3 3,2 3,2 %15 %37 %24 2017 2018 2019 2020 2021 2004* 2021 GASOLINE DIESEL AUTOGAS GASOLINE DIESEL AUT
Slide 17: Leader of the autogas market in Turkey
17 > Leader of the autogas market in Turkey AUTOGAS MARKET SHARES MARKET SHARE & STATION NUMBER SHARE (%) 21.5 MARKET SHARE AYGAZ 21.5% STATION NUMBER SHARE PO 14.4% 16 SHELL & TURCAS 11.9% 1314.4 11.9 8.8 OYAK GROUP* 8.8% 8 8 8 7.4 5.6 6 5.1 BP 7.4% 4 4 2.3 SHV GROUP** 5.6% PO BP OYAK GROUP SHV GRO
Slide 18: D The LPG value chain
18 D The LPG value ~300 1,781 auto gas stations tankers chain Moving&floating Fixed storage storage capacity capacity of of 37,000 m3 178,400 m3 ~2,000 bulk gas customers 3 LPG ships 2.2 million belonging to tons of LPG the fleet of supply Anadoluhisarı Tankercilik Gebze Facility; exports of cylinde
Slide 19: Competitive supply chain
19 > Competitive supply chain BIG PLAYER ADVANCED MODEL • #1 purchaser in Mediterranean • Direct imports to 5 different locations • #1 importer in Turkey • Most diversified supply portfolio in Turkey • #1 LPG exporter in Turkey Diversified supplier & origins • #1 storage owner in Turkey Diversified
Slide 20: Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
20 Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 21: E Participation portfolio
21 E Participation Anadoluhisarı Akpa Marketing portfolio Shipping 100% 100% Aygaz Opet-Aygaz Naturalgas Real Estate 100% 50% Bal Kaynak** Entek Water Electricity 100% 50% Sendeo*** EYAŞ* Distribution 20% 55% *EYAŞ owns 51% of the shares of TÜPRAŞ ** 100% of the company shares are owned by Aygaz A.Ş
Slide 22: F Natural gas
22 F Natural gas LNG SALES Transportation 15% market share, 2021 sales: and regasification 300 industrial 82 mcm customers SALES VOLUME (mcm) PIPELINE NATURAL GAS SALES 1.279 Started in 2021 sales: 2010 246 mcm 827 694 475 PROJECTS 246 LNG & Pipeline gas import 100 105 105 77 77 79 79 82 73 2017 201
Slide 23: G Other participations
23 G Other participations POWER GENERATION SALES AND MARKETING Direct sale of cylinder gas and carboy TOTAL INSTALLED CAPACITY: 436 MW water throughout Turkey Natural Gas Fuel trade at its fuel stations Combined Cycle (NGCC): 112 MW 8 Hydro Assets: (HEPP): 265 MW Wind powered plant 60 MW STRATEGY OP
Slide 24: Long term strategic plan of Aygaz
24 > Long term strategic plan of Aygaz TURKEY LPG SUPPLY&DISTRIBUTION 1 To create sustainable value while keeping our leadership in Turkish LPG market NEW BUSINESS MODELS OVERSEAS LPG To develop new business SUPPLY&DISTRIBUTION lines through utilizing To become an international Aygaz brand and platf
Slide 25: Bangladesh Investment - United Aygaz LPG Ltd.
25 > Bangladesh Investment - United Aygaz LPG Ltd. • Bangladesh average GDP growth rate between 2015-2020 is 11% and it is one of the most densely populated countries in the world. Bangladesh LPG Market 165 million 148 K ton CAGR 53% 1.2 million ton 2015 2020 85% domestic consumption • Aygaz aims to
Slide 26: Bangladesh Investment : United Aygaz
26 > Bangladesh Investment : United Aygaz • Bangladesh LPG market, which grew by 28% and reached 1.2 million tons in 2020, is the fastest growing LPG market in the world with an average annual growth rate of 53% in the last 5 years. • In line with the investment plan, company’s capital is increased
Slide 27: Parcel Delivery- Sendeo Dağıtım Hizmetleri A.Ş.
27 > Parcel Delivery- Sendeo Dağıtım Hizmetleri A.Ş. (previous title: Aygaz Aykargo Dağıtım Hizmetleri A.Ş.) • Turkish e-commerce sector had grown by 35% on average between 2015 and 2019. In 2019 sector growth reached 39% YoY. In 2020 it is further up by 66% YoY with the impacts of the pandemic. • C
Slide 28: Sendeo Dağıtım Hizmetleri A.Ş.
28 > Sendeo Dağıtım Hizmetleri A.Ş. • In line with the investment plan, company’s capital is increased from 143.5 million TL up to 423.5 million TL in February 2022. • After starting Istanbul operations in May 2021, expansion to all 81 cities is completed in February 2022. • Sendeo delivered more th
Slide 29: Aygaz key takeaways
29 > Aygaz key takeaways Consistent Brand Long-term Diversifier Market Power Strategy & Portfolio Leader Builder Investor Strong Sales & Financial Logistics Network Strength STRATEGIC PRIORITIES Sustain its market leadership in LPG by; • Investing in the future with the responsibility of being the i
Slide 30: Shareholder value
30 > Shareholder value BIST Code AYGAZ STRENGTHS • Sustainable operating profitability from core business; LPG Bloomberg Code AYGAZ.TI • Resistant to economic fluctuations and crises Reuters Code AYGAZ.IS • Regular dividend payments IPO Date 13.01.1988 Free Float Rate 24.3% • Corporate governance pr
Slide 31: H Financial highlights
31 H Financial highlights REVENUE (m TL) 15.893 10.211 10.145 9.554 8.469 2017 2018 2019 2020 2021 Revenue figure fluctuations are mainly due to; • FX rate changes • Commodity price changes Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 32: Financial highlights
32 > Financial highlights GROSS PROFIT AND GPM 9% EBITDA** AND EBITDA MARGIN 9% 9% 9% 5% 4% 4% 7% 4% 1.438 2% 957 705 741 912 476 634 416 335 208 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 GROSS PROFIT GROSS PROFIT MARGIN EBITDA EBITDA MARGIN NET PROFIT* AND NPM PROFIT MARGINS 7% %12 %10 4% %
Slide 33: Financial highlights
33 > Financial highlights NET CASH (m TL) WORKING CAPITAL (m TL) 1,433 324 400 348 263 671 247 1,065 376 577 230 440 228 566 251 -380 -582 -670 -560 -579 -604 -824 2017 -753 2018 -860 2017 2019 -2,122 2019 2020 2020 2018 TRADE PAYABLES TRADE RECEIVABLES 2021 INVENTORY WORKING CAPITAL 2021 CURRENT RA
Slide 34: Financial highlights
34 > Financial highlights (m TL) 12M 2021 9M 2021 12M 2020 Debt Profile as of 31/12/2021 ST Borrowings 112 108 221 TL Bond; Current portion of LT Borrowings 955 966 346 12% LT Borrowings 1,486 824 997 FX Loan; TL Loan; Total Financial Debt 2,553 1,898 1,564 71% 17% Cash and cash equivalents (-) 1,69
Slide 35: Risk Policy
35 > Risk Policy FX & Interest •Zero FX exposure target after natural hedges (ie. LPG inventories) •Portfolio with fixed/variable interest rates Rate Risk •Proactive management of FX and interest rate with derivatives Limits for financial ratios and active liquidity risk management: Leverage & •Net
Slide 36: Sustainability Efforts - ESG
36 > Sustainability Efforts - ESG • Member of Koç Group who has committed to be Carbon Neutral by 2050 in line with the European Green Deal. • LPG is a cleaner product compared to other fossil fuels and Aygaz’s main product line autogas offers lower carbon emission. • First Turkish energy company pu
Slide 37: I Appendix
37 I Appendix Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 38: Income statement summary
38 1 Income statement summary (m TRY) 2017 2018 2019 2020 2021 Revenue 8,469 9,554 10,211 10,145 15,893 COGS (7,728) (8,920) (9,254) (9,233) (14,455) Gross Profit 741 634 957 912 1,438 Operating Profit 265 71 365 288 418 Profit Before Tax 621 250 306 31 697 Net Profit* 577 228 273 -25 670 EBITDA** 3
Slide 39: Balance sheet summary
39 2 Balance sheet summary (m TRY) 2017 2018 2019 2020 2021 Cash & Cash Eq. 593 648 665 961 1,693 Trade Receivables 577 440 566 671 1,065 Inventories 324 348 263 400 1,433 Inv. Acc. Under Equity Method 2,273 2,305 2,059 1,847 2,161 Prop. Plant & Eq. 678 687 713 696 772 Financial Debt (973) (1,401) (
Slide 40: Quarterly Financials – Q1 2022
40 3 Quarterly Financials – Q1 2022 QUARTERLY / (YoY) Revenue 6,413 Million TL 123% Gross profit 465 Million TL 72% Operating profit 19 Million TL -77% EBITDA (excl. other op. inc/exp) 183 Million TL 36% Net profit (excl. non-cont. interests) 201 Million TL N/M • In Q1 2022, gross profit is up by 72
Slide 41: Aygaz LPG Sales (Quarterly)
41 4 Aygaz LPG Sales (Quarterly) (000 tons) 712 556 535 441 400 421 320 327 206 221 222 142 151 154 133 9 9 9 9 9 64 76 81 66 58 cylinder bulk auto international, wholesale and trading Q1 2022 sales volumes were realized as; 108 thousand tons in wholesale (+65% YoY) 110 thousand tons in internationa
Slide 42: Market Shares
42 5 Market Shares CYLINDER AUTOGAS 41.7% As of February 2022 EMRA report, Aygaz cylinder and autogas market shares are 41.7% and 21.6% 21.6% respectively. FEBRUARY 2022 (41.6% and 21.8% in February 2021) Turkish LPG Demand (000) tons According to February 2022 EMRA report, Total 504 514 • Turkish c
Slide 43: Subsidiaries and Affiliates
43 6 Subsidiaries and Affiliates Subsidiaries Principal activity Participation Anadoluhisarı Tankercilik A.Ş Shipping 100% Kandilli Tankercilik A.Ş. Shipping 100% Kuleli Tankercilik A.Ş. Shipping 100% Kuzguncuk Tankercilik A.Ş. Shipping 100% Akpa Day. Tük. Lpg ve Akar. Ürün. Paz. A.Ş. Marketing 100%
Slide 44: Subsidiaries and Affiliates
44 > Subsidiaries and Affiliates Affiliates Principal activity Participation Enerji Yatırımları A.Ş. Energy 20% Entek Elektrik Üretimi A.Ş. Electricity 50% Opet Aygaz Gayrimenkul A.Ş. Real Estate 50% United Aygaz LPG Ltd - Bangladesh LPG distribution 50% Financial Assets Principal activity Participa
Slide 45: Forward looking statements for 2022
45 7 Forward looking statements for 2022 • Cylinder: 280-290 thousand tons Sales volume • Autogas: 690-720 thousand tons • Cylinder: 41.0%-43.0% Market share • Autogas: 21.5%-22.5% Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 46: J Glossary
46 J 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 Na
Slide 47: K Disclaimer
47 K Disclaimer • This presentation may contain 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 varia
Slide 48: L Contacts
48 L Contacts investorrelations@aygaz.com.tr gokhan.dizemen@aygaz.com.tr Gökhan Dizemen, CFO +90 212 354 1764 Ali Sencer Turunç, Corporate Finance and sencer.turunc@aygaz.com.tr +90 212 354 1723 Strategy Director selin.sanver@aygaz.com.tr Selin Sanver, Investor Relations Manager +90 212 354 1659 www
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