Aygaz Anonim Sirketi · BIST:AYGAZ

Aygaz Anonim Sirketi — Aygaz A.Ş. — Investor Presentation (January 2016)

30 slides from Aygaz Anonim Sirketi's investor presentation, January 2016

  1. Slide 1: Aygaz Investor Presentation

    AYGAZ INVESTOR PRESENTATION January 2016

  2. 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

  3. Slide 3: Aygaz Overview

    AYGAZ Overview  Leading LPG distributor of Turkey Shareholders • 1.8 m tons sales – 2014 Publicly • $3.2 b revenue – 2014 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

  4. 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  Most preferred LPG brand in Turkey 554 620 668 589 707 since its foundation 578 604 621 662 688  Market leader with 3 brands 59 60 60 46 37 409 39

  5. 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

  6. Slide 6: LPG Price

    LPG Price SP (Algeria) Petroleum (Brent) 1.100 150 1.000 977 130 900 112 800 110 108 $/barrel 700 $/tons 738 90 600 500 70 368 356 330 400 50 300 48 49 46 200 30 N-14 N-15 M-14 M-14 M-15 M-15 S-14 S-15 J-14 J-14 J-15 J-15 LPG prices declined to the lowest level in the 12 years, falling sharper than

  7. Slide 7: Turkish LPG market ranking

    Turkish LPG market ranking 1.5 m  Turkey is 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 3rd tons biggest autogas market in the World *WLPGA Statistical Review of Global L

  8. Slide 8: Turkish LPG market

    Turkish LPG market 4.3 • 3.7 m tons, #2 in Europe, #14 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 m cars • Liberal market with regulatory Evolving from cylinder to auto body-EMRA 76% 44% 1,551 2,838 1,49

  9. Slide 9: Market Players

    Market Players Cylinder market shares 2015/10 Autogas market shares 2015/10 Aygaz; Aygaz; Petgaz; 4% Other; 13% 42% 25% Other; 20% Akpet Gas; 4% Demirören; 16% Total Gas; 4% BP Gas; 6% OMV PO; 14% SHV; 24% SHV; 7% Demirören; Shell Gas; 12% 8%  Leading 3 players in the cylinder market and first 8 pl

  10. Slide 10: Autogas Market

    Autogas Market Turkish Autogas Consumption (m tons) 3,5 3,0 2,8  Steady growth since 2003 2,5 2,0  Most widely-used passenger 1,5 car fuel since 2009 1,0 0,5 0,4  With 4 million cars, 4 out 0,0 of 10 passenger cars run on 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013

  11. Slide 11: Autogas Conversions

    Autogas Conversions 10,5 9,9 7,1 7,5 8,1 8,6 9,3 250,000 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  Payback in 15,000 km Passenger car park Autogas car park 2004 2014 Turkish fuel 29% consumption 5% 80% 42% shifting to 16% 29% Aut

  12. 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 7% 8%  Aygaz&Opet synergy leads Shell-Turcas 8% 12% autogas market İpragaz 7% OMV PO 12% 14% Aygaz Opet 17% 25% Station number share Market Share EMRA d

  13. Slide 13: Cylinder Market

    Cylinder Market Cylinder Market (000) tons  60% market share in residential 1044 979 890 market 842 801  12,300+ points of sale 409 393 382 359 342  Fully integrated production cycle; Gebze plant 2010 2011 2012 2013 2014 Domestic market Aygaz Cylinder Sales Contraction 4% 2% Growth signals for th

  14. Slide 14: The LPG Value Chain

    The LPG Value Chain Supplying 1.7 million tons of LPG Fixed storage Moving storage capacity of capacity of 4 LPG ships belonging to the fleet of 56,000 m3, which covers 1,631 auto 176,000 m3 via 23 Anadoluhisarı Tankercilik 55% of Turkey gas facilities stations 1,000,000+ vehicles using Aygaz Gebze

  15. 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

  16. 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

  17. Slide 17: Natural Gas

    Natural Gas LNG Sales Sales Volume (mcm) 1,103 Pipeline Natural Gas Sales  Transportation and  Started in 2010 regasification 366  2015 sales : 800 mcm 219  300 industrial customers 68 55 Projects: 19% market share 114 141 128 125 94  LNG & Pipeline gas import 2010 2011 2012 2013 2014  2015 sa

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. Slide 23: Financial Highlights

    Financial Highlights Sales Revenue Gross Profit and GPM 7.061 600 11% 10% 12% 9% 9% 7% 10% 6.005 500 8% 10% 5.456 5.586 5.361 4.658 4.814 400 8% 300 521 571 527 6% 501 478 489 200 409 4% 100 2% 0 0% 2010 2011 2012 2013 2014 2014/9m 2015/9m Net sales Gross profit Gross profit margin EBITDA and EBITDA

  24. Slide 24: Financial Highlights

    Financial Highlights Net Cash Working Capital 253 151 120 190 276 110 181 436 159 126 184 232 213 248 267 390 542 265 299 304 367 2010 2011 2012 2013 2014 2014/9m 2015/9m (300) (251) (269) (376) (319) (297) -65 -74 2010 2011 2012 2013 2014 2015/9m -204 Trade Payables Trade Receivables -349 Inventory

  25. 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

  26. Slide 26: Contacts

    Contacts Ferda Erginoğlu, CFO E-mail: ferda.erginoglu@aygaz.com.tr Phone: +90 212 354 1733 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

  27. Slide 27: Appendix

    Appendix

  28. Slide 28: Income Statement Summary

    Income Statement Summary (m TRY) 2010 2011 2012 2013 2014 2015/9m Sales Revenue 4,658 5,456 5,586 6,005 7,061 4,814 COGS (4,156) (4,978) (5,065) (5,434) (6,534) (4,325) Gross Profit 501 478 521 571 527 489 Operating Profit 231 371 206 170 110 162 Profit Before Tax 283 419 345 237 237 294 Net Profit

  29. Slide 29: Balance Sheet Summary

    Balance Sheet Summary (m TRY) 2010 2011 2012 2013 2014 2015/9m Cash & Cash Eq. 262 254 125 173 161 251 Trade Receivables 265 299 304 367 390 542 Inventories 159 184 213 276 110 190 Investments 853 1,020 1,230 1,377 1,677 1,765 Prop. Plant & Eq. 475 573 595 589 585 647 Financial Debt (111) (2) (6) (2

  30. Slide 30: 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

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