Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — Investor Presentation (September 2018)
51 slides from Aksa Enerji Uretim A.s's investor presentation, Sep 4, 2018
Slide 1: Transforming into a Global Energy Player
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... INVESTOR PRESENTATION 04 SEPTEMBER 2018 P O W E R B E Y O N D B O R D E R S
Slide 2: Assets under operation across Turkey and Northern Cyprus
5 assets under operation CURRENT across Turkey and Northern Cyprus TOTAL Bolu-Göynük 270 MW 1,835 MW Natural Gas (3 plants) 1,412 MW 77% Fuel-Oil (1 plant) 153 MW 8% Lignite (1 plant) Manisa 270 MW 15% 115 MW Şanlıurfa Antalya 147 MW 1,150 MW Northern Cyprus 153 MW 1
Slide 3: Assets under operation across Africa
3 assets under operation CURRENT across Africa TOTAL Aksa Energy’s installed 386 MW capacity in Africa will reach 530 MW once the power plants reach full capacity. Ghana HFO Power Plant became operational at the end of March 2017 with 192.5 MW and reached 280 MW at the beginning of August 2017. Mali
Slide 4: Pipeline of 2 international extension projects
Pipeline of INSTALLED PIPELINE INSTALLED CAPACITY CAPACITY 2 international extention projects 2.365 MW adding 144 MW 2.236 MW to our portfolio 15 270 270 The favorable effects of these power plants on our financials have 1.412 become clearly visible 1.412 from 3Q2017. Pipeline of 144 MW is made up o
Slide 5: International Expansion
“INTE RNATIONAL .. “EXPANSION ea r
Slide 6: Aksa Energy in Africa
Aksa Energy in Africa Ghana Madagascar Mali Population 28.8 mn Population 25.6 mn Population 18.5 mn GDP $ 47.33 bn GDP $ 11.5 bn GDP $ 15.3 bn GDP per capita $ 1,641 (real) GDP per capita $ 450 GDP per capita $ 825 Installed Capacity 4,440 MW Installed Capacity 676 MW Installed Capacity 535 MW Ener
Slide 7: Ghana HFO Power Plant 1st Phase Completed
Ghana HFO Power Plant 1st Phase Completed Construction completed in 9.5 months, utilising existing equipment from idle PPs in Turkey, reducing cash CAPEX. KEY POINTS •Over 120,000 m2 power plant area •Land purchased •1,200 containers of equipment •200 employees to work once the construction is compl
Slide 8: Ghana
Ghana Aksa Energy signed a PPA with the Republic TOTAL INSTALLED CAPACITY (MW) of Ghana pertaining to construction of a power plant, electricity generation and 5.000 take-or-pay electricity sales. 4.000 • 6.5 year power purchase agreement (PPA) with Republic of 3.000 Ghana for installation of a 370
Slide 9: Ghana – Fast Track, USD Based Cash Generation
Ghana – Fast Track, USD Based Cash Generation Cash CAPEX recovered • Became operational at the end of March with 192.5 MW and increased to in June 2018 280 MW at the beginning of August 2017 • 6.5 years contract started in August 2017 • Option to go up to 370 MW by YE2018 • Ghana Parliament has appr
Slide 10: Ghana HFO Power Plant – Update on 2018 Developments
Ghana HFO Power Plant – Update on 2018 Developments Additional engines to • 223,5 MW guaranteed capacity is working since August 2017. To provide this increase the capacity to guaranteed capacity, 280 MW capacity is installed. 370 MW are ready and • Additional engines to take the capacity to 370 MW
Slide 11: Madagascar HFO Power Plant 1st Phase – 66 MW Completed
Madagascar HFO Power Plant 1st Phase – 66 MW Completed *Picture as at July 2018 9
Slide 12: Madagascar
Madagascar 20 year power purchase agreement (PPA) in INSTALLED CAPACITY (MW) the Republic of Madagascar with Jiro Sy 600 Rano Malagasy (Jirama), the state-owned electricity and water services company. 400 • Established a 58.35% subsidiary in the Republic of Mauritius (Aksaf Power Ltd) with a local p
Slide 13: Madagascar Key Points
Madagascar Key Points Cash CAPEX recovered • 61% of consumption in the country to be provided by Aksa Energy when in February 2018 both phases are operational • Advance payment ($3 mn) is received • Became operational in July with 25 MW and increased to 50 MW at the beginning of August 2017 • 66 MW
Slide 14: Madagascar HFO Power Plant – Update on 2018 Developments
Madagascar HFO Power Plant – Update on 2018 Developments A rehabilitation & • Madagascar has a new strategy of activating its existing sleeping assets. Out of these assets, operation agreement is a 5-year Operation & Maintenance contract for a 24MW power plant, expected to be operational by last qua
Slide 15: Mali HFO Power Plant Operational since August 2017
Mali HFO Power Plant Operational since August 2017 *Picture as at July 2018 13
Slide 16: Mali
Mali Emergency power purchase agreement INSTALLED CAPACITY (MW) with Énergie du Mali for the guaranteed 400 sale of the energy generated via EURO based tariff • 40 MW HFO power plant in the capital of Republic of Mali, Bamako 200 • 3 year contract signed with Énergie du Mali for the 380 guaranteed s
Slide 17: Mali – Key Points
Mali – Key Points 13% of consumption • € 4 mn mobilisation fee is received in the country to be • € 1.6 mn payment guarantee is received provided by Aksa • Became operational at the beginning of August with 10 MW Energy • Full commissioning (40 MW) completed in September • 13% of consumption in the
Slide 18: Mali HFO Power Plant – Update on 2018 Developments
Mali HFO Power Plant – Update on 2018 Developments Due to presidential • 40 MW installed, 30 MW guaranteed capacity up and running since elections, September 2017. negotiations are expected to resume • Negotiations to extend the duration and the capacity are ongoing. The process has been delayed due
Slide 19: Turkey & Africa
Turkey & Africa While continuing its investments in Turkey, EBITDA Aksa Energy has moved toward becoming a global brand with the investments it has undertaken in Africa. Turkey Turkey African PPs will be making up c.76% of EBITDA in 2018 Mali Ghana Africa Madagascar 17
Slide 20: Potential International Operations
POTENTIAL INTERNATIONAL OPERATIONS
Slide 21: Potential Opportunities for 2018 & Beyond
Potential Opportunities for 2018 & Beyond In one of the below countries, we are one of the two short runners announced by the Ministry of Energy. Mali Senegal Chad Burkina Faso Guinea Benin Ghana Togo Cameroon Gabon Indonesia Tanzania Angola Madagascar 18
Slide 22: Turkish Operations
TURKISH TURKISHOPERATIONS OPERATIONS
Slide 23: Turkish Operations
Turkish Operations • Recent gas price increase has been offset by a similar level of spot price increase, keeping the spark spread intact for our gas fired PPs. • The gas price is pegged to USD ($270/tcm), therefore, further increases are expected inline with the devaluation. • Spot market prices ar
Slide 24: Financial & Operational Highlights 1H 2018
FINANCIAL & OPERATIONAL HIGHLIGHTS 1H 2018
Slide 25: 1H 2018 Results Sales Breakdown (Turkey+N.Cyprus)
FINANCIAL HIGHLIGHTS 1H 2018 Results Sales Breakdown (Turkey+N.Cyprus) 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 1H 2017 1H 2018 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern Cyprus 176 388 176,615 380 175,897 431 175,664 467 176,518 560 356 383 352,182 5
Slide 26: 1H 2018 Results Snap Shot
FINANCIAL HIGHLIGHTS 1H 2018 Results Snap Shot 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 QoQ Change 1H 2017 1H 2018 YoY Change Installed Capacity 2,211 MW 2,377 MW 2,236 MW 2,221 MW 2,221 MW 0 MW 2,426 MW 2,221 MW -205 MW Sales Volume (GWh)* 3,764 4,204 4,310 3,778 3,226 -14.6% 8,440 7,004 -17% Net Sa
Slide 27: Rapid improvement in Net Financial Debt/EBITDA ratio
FINANCIAL HIGHLIGHTS 1H 2018 Results Rapid improvement in Net Financial Debt/EBITDA ratio EBITDA NET FINANCIAL DEBT/EBITDA TRY mn No renewable Limited No contribution 10 renewable renewable but full Africa contribution contribution but full but full Africa 8,6 250 Renewable Africa 233 8,3 contributi
Slide 28: 1H 2018 Results Sales Breakdown
FINANCIAL HIGHLIGHTS 1H 2018 Results Sales Breakdown 3Q 2017 4Q 2017 1Q 2018 2Q 2018 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET 4,204,334 174 4,309,588 173 3,778,091 187 3,226,329 226 (Including N. Cyprus) AFRICAN MARKET 591,853 661 371,979 757 432,862 732 255,996 1,125 TOTAL 4,7
Slide 29: Regional EBITDA Breakdown
FINANCIAL HIGHLIGHTS 1H 2018 Results Regional EBITDA Breakdown REVENUES (TRY mn) Although 70% of the revenues 605 are generated from Turkey and TRNC, African power plants generated 75% of the EBITDA in 1.435 1H18 due to their high margin FX based sales. TURKEY+N.CYPRUS AFRICA EBITDA (TRY mn) 112 338
Slide 30: EBITDA Breakdown by Currency & Fuel
FINANCIAL HIGHLIGHTS 1H 2018 Results EBITDA Breakdown by Currency & Fuel EBITDA BY FX RATE Hard currency portion of the EBITDA constitutes 88% of Aksa Energy’s EBITDA in 1H18. 12% FX BASED Out of the 12% pure Turkish TRY BASED operations, EBITDA derived from natural gas is only 7% 88% EBITDA BY FUEL
Slide 31: Regional Breakdown
FINANCIAL HIGHLIGHTS 1H 2018 Results Regional Breakdown EBITDA (TRY mn) YoY regional comparison is not meaningful for 1H18, as there was only a very small 170 revenue contribution from Ghana PP in 168 1Q17 and no positive contribution at the EBITDA level. Furthermore, Mali and Madagascar PPs were no
Slide 32: Consolidated Income Statement Highlights 1H 2018
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2018 Consolidated Income Statement NET SALES & EBITDA (TRY MN) EBITDA Margin EBITDA Margin 2Q17: 10.9% 1H17: 9.8% 2Q18: 22.5% 2.058 1H18: 21.9% 1.613 1.036 875 450 157 96 233 Net Sales EBITDA Net Sales EBITDA 2Q2017 2Q2018 1H2017 1H2018 OPERATING INCOME &
Slide 33: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2018 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 3.500 86% 90% 89% 88% 100% 90% 3.000 76% 80% 2.500 62% 62% 62% 63% 70% 2.000 60% 3.086 3.299 3.096 2.984 2.777 3.251 50% 2.742 2.859 1.500 40% 1.781 1.000 30% 20% 500 10% 0 0% 2014 2
Slide 34: Effect of FX Rate Movements on Financials
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2018 Effect of FX Rate Movements on Financials Net FX Gain From USD/TRY Closing USD/TRY 6M Avg. FX Gain Booked in USD/EURO 3,7719 4,0848 EBITDA Receivables/Payables (USD/TL Closing 4,5607) 31/12/2017 30/06/2018 30/06/2018 555.734.113 TL 604.767.563 TL 63.
Slide 35: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY mn) 31.12.2015 31.12.2016 31.12.2017 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 Net sales 2,306.7 3,178.2 3,599.3 738.4 874.6 952.4 1,033.9 1,022.1 1,036.1 Cost of sales -1,979.5 -2,907.2 -3,284.0 -714.7 -824.1 -814.4 -930.8 -857.1 -853.6 Gross
Slide 36: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Assets (TRY mn) 31.12.2015 31.12.2016 31.12.2017 1Q2018 1H2018 Cash and cash equivalents 48.5 219.4 59.5 36.9 19.0 Trade receivables net 119.8 219.7 759.5 989.15 1,212.6 Due from related parties and shareholders 67.3 59.9 41.3 29.2 130.4 Inventory 339.
Slide 37: Consolidated Statement of Cash Flow
FINANCIAL HIGHLIGHTS Consolidated Statement of Cash Flow (TRY mn) 31.12.2015 31.12.2016 31.12.2017 1Q2018 1H2018 Net income (loss) before tax -221.08 -367.62 290.12 68.21 133.33 Depreciation and amortisation 146.59 191.17 225 65 134.75 Other adjustments 195.13 623.91 -232.62 61.87 319.82 Change in w
Slide 38: 2018 Guidance
2018 GUIDANCE
Slide 39: 2018 Guidance
FINANCIAL HIGHLIGHTS 2018 GUIDANCE 2018 EBITDA BREAKDOWN 2018 EBITDA GUIDANCE (TRY) • SALES: 11.3 TWh • REVENUES: TRY 3.4 bn TURKEY+ N.CYPRUS • CAPEX*: TRY 120 mn 24% • EBITDA**: TRY 840 mn 840 642 AFRICA 76% 198 TURKEY+N.CYPRUS AFRICA TOTAL * Includes maintenance CAPEX in Turkey and Africa and the
Slide 40: 2018 Guidance – EBITDA Distribution
FINANCIAL HIGHLIGHTS 2018 GUIDANCE In YE2018, Aksa Energy is EBITDA DISTRIBUTION (%) expected to generate 76% of its EBITDA from its African power plants while 24% from Turkey 24% 18% and Northern Cyprus (TRNC). As TRNC agreement is also a PPA in USD, 82% of 76% 82% Aksa Energy’s EBITDA is expected
Slide 41: Turkish Market
TURKISH MARKET
Slide 42: 1H2018 – Key Figures
MARKET HIGHLIGHTS 1H2018 – Key Figures GENERATION BY FUEL TYPE Generation via natural gas 3% 1% Fuel-Oil decreased by 5 ppts YoY mostly 6% due to the increase in natural gas Lignite & Coal prices and the low spark spread. 37% Natural gas 23% Hydro On the other hand, generation Wind from coal & ligni
Slide 43: Installed Capacity Changes by Fuel Type
MARKET HIGHLIGHTS Installed Capacity Changes by Fuel Type 1H2018 – 1H2017 CAPACITY CHANGES When new and decommissioned capacities are Fossil Renewable netted off, there is an increase MW 3.815 of 1.447 MW in coal & lignite, 4.000 125 MW in natural gas, 673 MW 3.000 1.447 in hydro, 462 MW in wind and
Slide 44: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption Electricity generation increased by 2% and consumption by 3% YoY in 1H2018. GENERATION (GWh) CONSUMPTION (GWh) 138.423 141.842 141.903 138.252 1H2017 1H2018 1H2017 1H2018 37
Slide 45: Energy Prices
MARKET HIGHLIGHTS Energy Prices WEIGHTED AVERAGE PRICE (TRY) Weighted average spot price in 280 277* 1H18 was TRY 181, 12% higher 210 230 195 than TRY 162 in 1H17. 185 178 181 187 180 161 188 178 180 177 184 178 130 168 158 Due to the sharp increase in spot 148 148 156 151 prices after the reporting
Slide 46: Natural Gas Prices
MARKET HIGHLIGHTS Natural Gas Prices BOTAŞ pegged the natural gas price to BOTAŞ NATURAL GAS TARIFF (TRY) $270/tcm since August, therefore, further increases are expected, inline 1800 1.700 600 with the devaluation. 1600 500 1.312 1400 The gas price increases have been offset 1200 400 to a certain e
Slide 47: Appendix
APPENDIX
Slide 48: Operational Assets
Operational Assets Power Plant License Owner Fuel Type Installed Capacity (MW) % Northern Cyprus Aksa Cyprus Fuel-oil 153 Ghana Aksa Energy Fuel-oil 280 Mali Aksa Energy Fuel-oil 40 Madagascar Aksa Energy Fuel-oil 66 Total Fuel-Oil Fired Power Plants 539 24% Antalya NGCC Aksa Energy Natural Gas 1.15
Slide 49: Ongoing Investments
Ongoing Investments Power Plant Investment License Owner Fuel Type Capacity (MW) Completion Year Ghana Greenfield Aksa-Ghana HFO 90 2018 Madagascar Greenfield Aksaf Power HFO 54 2020 onwards Total 144 The above projects are utilising mostly existing equipments from Şırnak, Hakkari, Mardin 1, Mardin
Slide 50: Contact Investor Relations
Contact Investor Relations Özlem McCann Director Investor Relations and Corporate Communications Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Özalp Çıkmazı No:10 Kavacık / Beykoz, Istanbul
Slide 51: Disclaimer
Disclaimer Aksa Energy has prepared this presentation for the sole purpose of providing information, which 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 s
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