Aksa Enerji Uretim A.s. · BIST:AKSEN

Aksa Enerji Uretim A.s — Aksa Enerji — Investor Presentation (November 2015)

37 slides from Aksa Enerji Uretim A.s's investor presentation, Nov 6, 2015

  1. Slide 1: Aksa Enerji - The leading IPP in Turkey

    Aksa Enerji The leading IPP in Turkey Investor Presentation 6 November 2015

  2. Slide 2: 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 18 operational assets totalling 2,192 MW 5 Diversified pipeline of 7 projects adding 261 MW to our p

  3. Slide 3: 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

  4. Slide 4: We are the second largest IPP in Turkey with 2,192 MW installed capacity

    We are the second largest IPP in Turkey with 2,192 MW installed capacity IPPs by Installed Capacity 2.560 2.192 1.665 1.759 1.490 (MW) 1.292 1.011 854 486 365 Enerjisa Aksa Enerji İÇDAŞ Limak Eren Enerji Akenerji Zorlu Enerji Cengiz Enerji Bis Enerji AES Entek Source: Information obtained from each

  5. Slide 5: 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 463 Demand CAGR – High Demand: 6.8% MWh/pa 450 Scenario 9 400 8 Low 350 381 Demand 7 255 Scenario 300 6 250 CAGR: 5.5% CAGR – Low Demand: 4

  6. Slide 6: We have 18 assets under operation across Turkey

    We have 18 assets under operation across Turkey 17 1 ÇORUM-İNCESU KIYIKÖY 15 MW 27 MW AKKÖY 16 BOLU-GÖYNÜK 18 13 MW 2 135 MW AYVACIK AYRES 5 MW 3 BALIKESİR KAPIDAĞ 24 MW VAN 15 115 MW 4 BALIKESIR ŞAMLI 114 MW Total 2,192 MW 5 MANISA KARAKURT 11 MW 6 ŞIRNAK 14 MANISA 115 MW 24 MW 7 13 ANTALYA MARDIN-

  7. Slide 7: Each of our assets has key specifications to fortify our strategy

    Each of our assets has key specifications to fortify our strategy A Baseload Natural Gas Fired PP – Antalya D Wind Farms  Located in a favorable wind  One of the most efficient CCGT corridor with high load factors plants in Turkey, with a  7 farms, with a total capacity of capacity of 1,150 MW wi

  8. Slide 8: We have a diversified pipeline of 7 projects adding 261 MW to our portfolio

    We have a diversified pipeline of 7 projects adding 261 MW to our portfolio Current Installed Total Installed Capacity Pipeline Capacity 261 MW 2,453 MW 249 MW 12 MW Hydro 81 MW 109 MW 2,192 MW Wind 45 MW Lignite 135 MW 304 MW 270 MW 6 1 7 1.527 MW 1 Hydro 1 Hydro 4 Wind 1 Wind 5 Wind 1 Lignite 1 Li

  9. Slide 9: Cost Reduction - Increasing share of Renewable & Local Resources

    Cost Reduction- Increasing share of Renewable & Local Resources Local Resource Renewable Capacity Additions Capacity Additions Renewable & Local Resource Capacities 81 80 300 2017E 683 70 250 270 60 50 200 2016E 654 40 30 24 150 14 17 20 13 13 12 13 12 100 2015E 561 10 3 4 4 0 50 2014 267 0 Bolu Göy

  10. 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 10% 12% 27% MWh (+) 81 MW Hydro 700 4000 (+) 33 MW Wind 600 81 3500 12 (+) 20 MW Wind (already operational) 270 3000 500 +32% (+) 135 MW Lign

  11. Slide 11: Company Highlights - Cost Structure (TL)

    Company Highlights - Cost Structure (TL) Cost Structure vs. Sales Price (9M 2015) Improving Lower Cost Output % of * Renewables TL/MWh Avg. Cost 125 Avg. Sales Price 179.5 Local 19% 17% Sourcing 320 9,925 GWh 280 7,591 GWh 240 215 4.908 49% 1.000 200 184 29 - 368 65% 160 34 140 1.133 120 104 80 5.61

  12. Slide 12: Company Highlights - Sales mix and prices (TL)

    Company Highlights - Sales mix and prices (TL) Capacity 44% 77% (adj) Utilization TWh 9.9 TWh 10 Balancing Market 9 Northern Cyprus Sales Wholesale Bilateral 3.2 BSM 32% 8 to BSM 7 Retail Bilateral 6 4.2 TWh 5 4 Total Contracted 6.7 Contracted 68% 3 86% 3.63.6 Sales BSM 2 1 14% Contracted 0.60.6 0 2

  13. 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 67x # of Bilateral 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Customers (2) 245 61

  14. Slide 14: Increased efficiencies of our CCGT plants and cut OPEX

    We have successfully increased efficiencies of our CCGT plants and managed to cut our OPEX to improve our cost base Low Unit Capex Improving Fuel Efficiency US$m/MW TL/MWh 56% 180 54% CCGT 0,4 160 52% Wind 1,4 140 50% 48% 120 Lignite 1,5 46% 100 44% Hydro 1,6 80 42% 2010 2011 2012 2013 2014 0,0 0,5

  15. Slide 15: Aksa Enerji - Business Update

    Aksa Enerji- Business Update  Bolu Göynük’s 1st phase (135 MW) became operational in July 2015. 2nd phase (135 MW) is expected to be operational by the year end.  Sebenoba WPP’s extention has been completed and a total of 17 MW installed capacity has become operational in 1H15, increasing the inst

  16. Slide 16: Ghana PPA - To provide fast track USD based cash generation

    Ghana PPA- To provide fast track USD based cash generation  5 year power purchase agreement (PPA) with Republic of Ghana for installation of a 370MW HFO plant, electricity generation and the guaranteed sale of this energy.  Approved by the parliament of Republic of Ghana  Can be extended before t

  17. Slide 17: 2015 Guidance - Financials

    2015 Guidance – Financials  Sales: 12.7 TWh (70% bilateral and 30% BSM sales)  Revenues: TRY 2.5 bn (adjusted)  Average Aksa Price: TRY175-180 (vs expected average market price of TRY140)  CAPEX: USD 170-180mn  EBITDA: TRY 420-430mn 16

  18. Slide 18: Tailored strategy to create sound and secure profitability

    Tailored strategy to create sound and secure profitability Evolution of Capacity and Sales Mix Total Contracted (1) Total Contracted (1) 14% Shifted strategy Fortifying baseload 23% to become baseload strategy & building cost producer effective pipeline 77% Total Spot (2) 86% 2.453 MW Total Spot (2)

  19. Slide 19: The Sector

    The Sector

  20. Slide 20: Market Highlights - Generation & Consumption

    Market Highlights- Generation & Consumption Generation (GWh) Consumption (GWh) 200.000 200.000 197.325 194.209 192.786 189.091 184.070 179.565 175.000 175.000 150.000 150.000 9M2013 9M2014 9M2015 9M2013 9M2014 9M2015  Electricity generation increased by 2.7% YoY in 9M15 while the consumption increa

  21. Slide 21: Market Highlights - Installed Capacity

    Market Highlights - Installed Capacity  Total installed capacity in Turkey has Hydro; 35% Wind; 6% increased by 2,636 MW Ytd to 72,156 MW in Others; 2% Fuel-oil; 1% 9M2015, representing an increase of 4%. 72,156 MW Natural gas; 35% Coal & Lignite; 21%  The majority of the new capacity came from hy

  22. Slide 22: Market Update - Generation by Type

    Market Update- Generation by Type  Source of electricity generation in 9M15 changed due to heavy rain and snow fall this year, with Generation by type 9M14 vs 9M15 hydros producing 28% of the total generation, as Wind Fuel-Oil opposed to 17% in 9M14. 4% 2% Lignite & Coal Hydro 27%  Capacity utilis

  23. Slide 23: Market Highlights - Prices

    Market Highlights - Prices  Prices – Weighted average prices were weak in 2015, compared to 2014, due to heavy rain and snow fall increasing production from hydroelectric power plants.  Although prices caught up with last year’s in the month of September, 3Q average prices were 12% lower YoY, whil

  24. Slide 24: Market Update - Changes in Market and Trade Volumes

    Market Update- Changes in Market and Trade Volumes  The OTC market is a new platform allowing electricity producers to buy and sell via bilateral agreements amongst them. This is has allowed the production companies a new «bilateral sales» concept in addition to bilateral sales to end users.  In 2

  25. Slide 25: 9M 2015

    9M 2015

  26. Slide 26: 9M 2015 Results - Snap Shot

    9M 2015 Results - Snap Shot * Adjusted Adjusted Adjusted YoY Adjusted YoY Q1 2015 H1 2015 9M 2015 Q3 2013 Q3 2014 Q3 2015 Change 9M 2013 9M 2014 9M 2015 Change Installed Capacity (MW) 2.151 2.160 2.192 2.052 2.127 2.192 65 MW 2.052 2.127 2.192 65 MW Sales Volume (GWh) 3.013 5.768 9.925 2.570 2.835 4

  27. Slide 27: 9M 2015 Results - Adjusted

    9M 2015 Results - Adjusted * 1Q 2015 2Q 2015 3Q 2015 1H 2015 9M 2015 MWh TL/MWh MWh TL/MWh MWh TL/MWh MWh TL/MWh MWh TL/MWh Bilateral Agreements (end user) 204.998 171,52 37.305 169,83 195.541 167,36 242.302 171,26 437.843 169,52 Northern Cyprus 170.814 261,78 168.578 295,81 179.794 351,93 339.393 2

  28. Slide 28: Financial highlights 9M 2015 - Consolidated income statement

    Financial highlights 9M 2015 Consolidated income statement Net sales & EBITDA (TL mn) 751 EBITDA Margin 1.608 EBITDA Margin 1.510 599 3Q14: 24.7% 9M14: 18.3% 3Q15: 16.1% 9M15: 21.7% 276 349 148 121 Net Sales EBITDA Net Sales EBITDA 3Q14 3Q 15 9M14 9M15 Operating income & Net income (TL mn) 115 246 8

  29. Slide 29: Net financial debt and repayment schedule

    Financial highlights 9M 2015 Net financial debt and repayment schedule Net financial debt (TL mn) 3.000 75% 80% 61% 62% 70% 2.500 55% 55% 2.541 52% 60% 2.000 50% 1.500 1.781 40% 1.280 1.306 30% 1.000 1.270 1.138 20% 500 10% - 0% 2010 2011 2012 2013 2014 9M15 6.0 4.2 4.0 4.2 5.2 6.1 Net Financial Deb

  30. Slide 30: Financial Highlights 9M 2015

    Financial Highlights 9M 2015

  31. Slide 31: Consolidated income statement

    Consolidated income statement (TL mn) 2011 2012 2013 2014 1Q 2015 1H 2015 9M 2015 Net sales 1315,4 1840,6 1786,0 1957,4 353,4 856,4 1607,6 Cost of sales -1088,0 -1604,0 -1565,9 -1710,8 -295,4 -678,8 -1337,7 Gross profit 227,4 236,6 220,1 246,6 58,0 177,6 269,9 Gross profit margin 17% 13% 12% 13% 16%

  32. Slide 32: Consolidated balance sheet

    Consolidated balance sheet (TL mn) Assets 2012 2013 2014 1Q 2015 1H 2015 9M 2015 Cash and cash equivalents 40,6 22,3 34,2 79,1 31,4 84,8 Trade receivables net 245,9 142,3 88,7 23,8 52,1 80,1 Due from related parties and shareholders 593,9 0,0 4,4 0,0 8,3 0,0 Inventory 135,5 250,0 269,2 292,7 364,9 4

  33. Slide 33: Consolidated statement of cash flows

    Consolidated statement of cash flows (TLmn) 2010 2011 2012 2013 2014 1Q 2015 1H 2015 9M 2015 Net income (loss) before tax 84,7 -116,5 226,5 -156,1 26,6 -113,1 -72,0 -279,3 Depreciation and amortisation 71,7 92,5 105,3 111,8 121,5 32,5 65,5 100,7 Other adjustments 14,7 231,2 -53,1 193,9 82,0 117,7 19

  34. Slide 34: Appendix

    Appendix

  35. Slide 35: Licence Portfolio (Operational)

    Licence Portfolio (Operational) 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 154 İdil (Şırnak) İdil İki Energy Fuel-oil 24 Total Fuel-Oil fired power plants 243 11% Antalya NGCC

  36. Slide 36: Ongoing Investments and Revised Licence Portfolio

    Ongoing Investments and Revised Licence Portfolio Planned Acquisitions from Kazancı Holding Additional Capacity Completion  Planned acquisition from Power Plant Investment License Owner Fuel Type (MW) Year Kazancı Holding:  Datça 12 MW WPP Datça Licenced Kazancı Holding Wind 12 2016 licence 12 Und

  37. Slide 37: Contact - Investor Relations

    Contact- Investor Relations Özlem McCann Head of IR Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Selvi Çıkmazı No:10 Kavacık Beykoz, Istanbul 36

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