Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Investor Presentation (May 2014)
36 slides from Aksa Enerji Uretim A.s's investor presentation, May 2014
Slide 1: Aksa Enerji: The leading IPP in Turkey
Aksa Enerji The leading IPP in Turkey Investor Presentation May 2014
Slide 2: Disclaimer
Disclaimer Aksa Enerji Üretim A.Ş. ("Aksa Enerji") has prepared this presentation material (the “Document”) for the sole purposes 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 16 operational assets totalling 2,066 MW 5 Diversified pipeline of 23 projects adding 2,115 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 Kazancı Group Gradually expanded into main segments of electricity & natural gas Excellent track record in building and integrating ene
Slide 5: We are the second largest IPP in Turkey with 2,066MW installed capacity
We are the second largest IPP in Turkey with 2,066MW installed capacity IPPs by Installed Capacity 2.560 2.066 1.605 1.585 1.490 (MW) 1.114 952 777 410 365 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: 8.4% MWh/pa 450 467 Demand Scenario 9 400 CAGR – Low Demand: 7.1% Low 425 8 350 Demand Scenario 7 300 245 6 250 CAGR: 5
Slide 7: We have 16 assets under operation across Turkey
We have 16 assets under operation across Turkey 1 2 3 AYVACIK AYRES ÇORUM-İNCESU SAMSUN 5 MW 15 MW 131 MW 4 VAN 16 115 MW BALIKESİR KAPIDAĞ 24 MW 15 BALIKESIR ŞAMLI 114 MW Total 2,066 MW 14 MANISA KARAKURT 11 MW 13 MANISA 115 MW ŞIRNAK 5 24 MW 12 ANTALYA 1,150 MW 6 MARDIN-1 33 MW 11 9 8 7 NORTHERN C
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 One of the most efficient Located in a favorable wind CCGT plants in Turkey, with corridor to benefit from high a capacity of 1,150 MW with load factors Siemens and GE equipme
Slide 9: We have a diversified pipeline of 23 projects adding 2,115 MW
We have a diversified pipeline of 23 projects adding 2,115 MW to our portfolio Installed Pipeline Capacity 438 MW 2,115 MW 1,153 MW Hydro 15 projects 698 MW Wind 69 MW 4 projects Lignite 1 project 270 MW 487 MW Natural Gas 2 projects 1,041 MW 37 MW 2,052 MW Fuel-oil 1 project 24 MW (1) 2 6 7 8 23 2
Slide 10: We target to reach 3,743 MW by 2017
We target to reach 3,743 MW by 2017 and create significant cost improvement with our renewables and lignite fired PP pipeline Targeted Capacity Increases in Renewables & Lignite (MW) MW 10% 18% 22% MWh 900 4000 Further (+) 260 MW Hydro 800 3500 pipeline of 185 (+) 96 MW Wind 700 270 3000 (+) 438 MW
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 (2013) Improving Lower Cost Output % of TL/MWh 168 367 Renewables 6% 15% 20% &Sourcing 320 Total Sales Volume (GWh) 9,784 286 9,109 280 Average Cost: 136 45 240 200 6,181 156 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% 56% 11 9TWh TWh Balancing Market 8 Northern Cyprus Sales Wholesale Bilateral to BSM 2.6 BSM 29% Retail Bilateral 6 4.2 TWh 4 Total 6.5 Contracted 71% 86% BSM 3.6 Contracted 2 Sales 14%
Slide 13: Shifting bilateral mix towards more profitable commercial clients
At the same time, we are shifting bilateral mix towards more profitable commercial clients Evolution of Eligibility Limit Increasing Contracted Volume Supported by Affiliated Distribution Regions 19.6x # of Bilateral 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 245 610 1,275 24,9
Slide 14: Increased CCGT efficiencies and cut opex
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) 3,743 MW 14% 29% Lignite Shifting strategy Fortify baseload to become baseload strategy & build cost Hydro producer 71% effective pipeline Wind Total Spo
Slide 16: 1Q 2014
1Q 2014
Slide 17: Market Highlights
Market Highlights 64.000.000 1,2 63.000.000 ►Electricity generation increased 62.000.000 1,0 61.000.000 0,8 by 4% in 1Q14 vs 1Q13 and by 1% 60.000.000 59.000.000 0,6 compared to 4Q13. 58.000.000 0,4 57.000.000 56.000.000 0,2 55.000.000 54.000.000 - 1Q13 2Q13 3Q13 4Q13 1Q14 66.000.000 1,2 Generation
Slide 18: Market Highlights
Market Highlights ►Prices – There was a steep hike of Weighted Average Price TL 25% in spot prices in February 2014 170 when compared to the same month 165,6 165 161,9 last year, as a result of natural gas 160,2 160 shortage in the first half of February. 155 This caused the weighted average price 1
Slide 19: Market Highlights
Market Highlights ►Total installed capacity in Turkey has increased by 568 MW in 1Q14, all from renewable sources. 460 MW of the new capacity came from HPPs, while 137 MW came from WPPs. ►However, due to the draught, the contribution of these new capacities have been minimal. Furthermore, the new ca
Slide 20: Turkish power market: Supply dynamics
Turkish power market Supply dynamics Breakdown of installed capacity by fuel type (1Q14) Breakdown of generation by fuel type Wind Fuel-oil Wind Fuel-oil 4% 1% 3% 2% Lignite & Coal 19% Hydro 18% Coal & Lignite 29% Hydro 36% Total installed capacity: Natural Gas 64.6 GW 40% Natural Gas 48% Breakdown
Slide 21: Company Highlights
Company Highlights ► At the end of Q1, we have introduced to the market a new concept of tariffs leading the sector in a new path of «price innovation». ► In 1Q14, net sales of the Company has increased by 25% YoY from 1,965 GWh to 2,458 GWh due to the increase percentage of bilateral agreements in
Slide 22: Company Highlights
Company Highlights ► The second phase of Belen/Atik WPP, which was 14MW has become operational in mid-February this quarter, taking this plant’s total installed capacity to 18MW, increasing our current installed capacity to 2,066MW and total renewable capacity to 217MW. ► Constructions of the 2 wind
Slide 23: Decreasing generation costs via increasing share of sourcing and renewables
Decreasing generation costs via increasing share of sourcing and generation from renewables Improving Lower Cost Output % of Renewables 12% 19% 25% increase in total production YoY &Sourcing 7 ppt increase in share of renewables & 2,458 GWh sourcing YoY, part of our strategy to decrease generati
Slide 24: 1Q 2014 Results
1Q 2014 Results * YoY YoY QoQ 2012 2013 Change Q1 2013 Q1 2014 Change Q4 2013 Q1 2014 Change Installed Capacity (MW) 2.045 2.052 7 MW 2.048 2.066 18 MW 2.052 2.066 14 MW Sales Volume (GWh) 9.784 9.109 -7% 1.965 2.458 25% 2.399 2.458 2% Capacity Utilization Rate (CUR) 60% 56% -4pp 50% 61% +11pp 58% 6
Slide 25: Financial highlights 1Q 2014: Consolidated income statement
Financial highlights 1Q 2014 Consolidated income statement Net sales & EBITDA (TL mn) 472 457 472 EBITDA Margin EBITDA Margin 392 4Q13: 15.8% 1Q13: 18.7% 1Q14: 15.5% 1Q14: 15.5% 73 73 72 73 Net Sales EBITDA Net Sales EBITDA 1Q13 1Q14 4Q13 1Q14 Operating income & Net income (TL mn) 46 44 42 44 21 Ope
Slide 26: Financial highlights 1Q 2014: Net financial debt and repayment schedule
Financial highlights 1Q 2014 Net financial debt and repayment schedule Net financial debt (TL mn) 1.600 61% 1.450 64% 1.400 1.270 1.280 1.306 62% 1.200 1.138 60% 58% 58% 1.000 55% 56% 800 55% 54% 600 52% 400 52% 50% 200 48% - 46% 2010 2011 2012 2013 1Q14 6.0 4.2 4.0 4.2 4.6 Net Financial Debt Levera
Slide 27: Financial Highlights FY 2013
Financial Highlights FY 2013
Slide 28: Financial highlights 2013: Consolidated income statement
Financial highlights 2013 Consolidated income statement Net sales & EBITDA (TL mn) 1.841 1.786 457 2.00 0 22,9% 1.841 1.786 25, 0% EBITDA Margin 433 EBITDA Margin 1.80 0 2012: 17.6% 2012: 15.6% 1.60 0 20, 0% 2013: 17.5% 2013: 15.8% 20,7% 1.315 17,6% 1.40 0 17,5% 1.20 0 15, 0% 1.00 0 912 800 10, 0% 6
Slide 29: Financial highlights 2013: Net financial debt and repayment schedule
Financial highlights 2013 Net financial debt and repayment schedule Net financial debt (TL mn) 1.600 61% 1.450 64% 1.400 1.270 1.280 1.306 62% 1.200 1.138 60% 58% 58% 1.000 55% 56% 800 55% 54% 600 52% 400 52% 50% 200 48% - 46% 2010 2011 2012 2013 1Q14 6.0 4.2 4.0 4.2 4.6 Net Financial Debt Leverage
Slide 30: Consolidated income statement
Consolidated income statement (TLm) 2010 2011 2012 2013 Q1 2013 Q1 2014 Net sales 911,9 1315,4 1840,6 1786,0 391,5 472,1 Cost of sales -775,5 -1088,0 -1604,0 -1565,9 -341,0 -423,5 0,0 Gross profit 136,4 227,4 236,6 220,1 50,5 48,6 Gross profit margin 15% 17% 13% 12% 13% 10% General & administrative
Slide 31: Consolidated balance sheet
Consolidated balance sheet (TL mn) Assets 2010 2011 2012 2013 1Q 2013 1Q 2014 Cash and cash equivalents 78,3 110,5 40,9 22,3 101,6 127,6 Trade receivables net 113,0 261,5 245,9 142,3 227,2 115,0 Due from related parties and shareholders 607,9 360,0 593,9 0,0 252,4 0,0 Inventory 81,3 121,5 135,5 250,
Slide 32: Consolidated statement of cash flows
Consolidated statement of cash flows (TLmn) 2010 2011 2012 2013 1Q 2013 1Q 2014 Net income (loss) 69,4 -122,0 219,9 -133,3 20,8 -9,6 Depreciation and amortisation 71,7 92,5 105,3 111,8 26,7 29,3 Other adjustments 13 236,8 -46,4 193,0 5,4 27,2 Change in w orking capital -67,1 -20,3 -189,4 7,5 -16,2 6
Slide 33: Appendix
Appendix
Slide 34: Operating (Current)
Operating (Current) Installed capacity Power plant Licensed owner Fuel type MW (Current) Mardin 1 Aksa Energy Fuel-oil 30.00 Mardin 2 Rasa Elektrik Fuel-oil 35.10 Northern Cyprus Aksa Cyprus Fuel-oil 120.00 İdil İdil İki Energy Fuel-oil 24.00 Total fuel-oil fired power plants 209.10 Antalya NGCC Aks
Slide 35: Ongoing Investments and Revised Licence Portfolio
Ongoing Investments and Revised Licence Portfolio Planned Acquisitions from Kazancı Holding Planned acquisitions from Kazancı Holding Additional Capacity Power Plant Investment License Owner Fuel Type (MW) Completion Year Siirt 24 MW operating fuel-oil PP Siirt Operational Kazancı Holding Fuel-O
Slide 36: Turkish power market
Turkish power market Installed Capacity by Fuel Annual Installed Capacity Increases GW CAGR GW 23.2 70 64.0 9.4% 18 57.1 16 60 52.9 49.5 14 11.5 44.8 25,0 12.9% 52% 50 41.8 39% 12 22,0 19,0 40 17,2 10 34% 15,4 6.8 14,2 8 30 4.7 4.3 6 3.4 11.7 2.9 20 39,0 7.4% 4 3.0 48% 33,9 35,0 1,8 29,3 32,3 1.0 3,
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