Slide 1: AYGAZ Investor Presentation
AYGAZ Investor Presentation May 2014
Slide 2: Who we are? - AYGAZ
Who we are? - AYGAZ • Leading LPG distributor of Turkey •1.6 m tons sales – 2013 •$3.1 b revenue – 2013 •29% market share • Diversified participation portfolio in energy; • Natural Gas • Refinery • Power Generation Summary financials; (Cons. in mTL) 2013 2012 2011 YoY change Revenue 6,005 5,586 5,45
Slide 3: Where we stand? – market leader
Where we stand? – market leader • Generic brand for LPG • #1 in Turkey, #5 in Europe • Leader since foundation • Over 50 years Aygaz Group 43% 24% Market shares Cylinder LPG Autogas 29% All segments 3
Slide 4: What we do?
What we do? 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 56,000 m3, which covers 1,530 170,000 m3 of Anadoluhisarı Tankercilik 55% of Turkey auto gas via 23 facilities stations 1,000,000+ vehicles using
Slide 5: What is the product? - LPG
What is the product? - LPG •Mixtures of hydrocarbons in which butane or propane are predominant • LPG market is supply oriented Why LPG? Anytime+Anywhere • Supply is secure as LPG is extracted from related natural gas facilities or as refinery gases Portable and versatile Abundant reserves-price
Slide 6: Facts about Turkish LPG market
Facts about Turkish LPG market Evolving from cylinder to auto 74% 38% 1,387 2,727 1,803 570 842 95 23% 16% 46% 3% 2004 2013 4.1 3.7 EMRA LPG Sector Reports 2004, 2013 3 2.1 •3.7 m tons, #1 in Europe 1.5 1.7 1.7 1 •75 distribution companies 0.4 •Serving; 7.5 m houses 3.9 m cars •Liberal market with r
Slide 7: Where is the growth? - autogas
Where is the growth? - autogas 3,0 TR Autogas Volumes Second 2,5 biggest autogas 2,0 market in the world (m ton) 1,5 2.7 m tons 45% of the 1,0 0,5 passenger car park 0,0 3.9 m cars TLPG Assocition Report, EMRA 50% Price Advantage of Auto Gas 40% 30% 20% 30% price 10% advantage to 0% gasoline -10% -2
Slide 8: Is the autogas growth sustainable? -Yes
Is the autogas growth sustainable? -Yes Passenger car park Autogas car park CAGR +7% CAGR +11% 9,3 9,7 8,6 7,1 7,5 8,1 280,000+ 3,7 3,9 4,1 conversions per 3,0 3,3 2,6 year 1,000+ conversion points $500 average cost Passenger car park Autogas car park Source: Aygaz / Tofaş Pay back in 15,000 k
Slide 9: How do we lead autogas market?
How do we lead autogas market? 24% 25% Market share vs number of stations share Long-term 20% 15% 15% 15% 12% strategy Aygaz&Opet 10% 5% 9% 4% 6% 5% builder synergy 5% 0% Opet partnership leads autogas market Market share Number station share * Feb 2013 PETDER and EMRA data Core business 20% 16% 20%
Slide 10: Is the cylinder market here to stay? - Yes
Is the cylinder market here to stay? - Yes 2.000 Contraction 1.500 slowing (000) tons 1.000 1.803 1.733 1.492 1.302 1.177 1.134 1.044 down 500 979 890 842 - Potential growth in 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 rural areas TLPG Assocition Report, EMRA Turkey is fifth in residential c
Slide 11: Aygaz Key Takeaways
Aygaz Key Takeaways Financial Strength Brand Power Long- term Strategy Builder Consistent Market Diversifier & Leader Portfolio Investor Strong Sales & Logistics Network 11
Slide 12: Shareholding & Portfolio Structure
Shareholding & Portfolio Structure Shareholders Participations Koç Group – 51% Akpa - 100% Anadoluhisarı - 100% Liquid Petroleum Aygaz Natural Gas-99% Gas Development AYGAZ Co. – 25% OAG - 50% AES Entek - 25% Publicly traded - 24% Tüpraş – 10% 12
Slide 13: What we do in natural gas?
What we do in natural gas? LNG Distribution • Transportation and regasification • 350 industrial customers, 20% market share • 2014 planned sales : 120 mcm • Total natural gas market: 46 bcm; LNG market: 0.7 bcm Pipeline Natural Gas • Started in 2010 with 68 mcm sales • 2014 planned sales : 1 bcm St
Slide 14: What is our natural gas strategy?
What is our natural gas strategy? 14
Slide 15: Turkey’s Natural Gas Supply-Demand
Turkey’s Natural Gas Supply-Demand bcm 2017: Contract: 48 bcm 2012: Demand: 57bcm Contract: 52 bcm Demand: 49 bcm Necessity for new gas Russia to be renewed contracts Azerbaijan Russia Blue Stream Iran Nigeria Russia Algeria Russia2 Source: Aygaz & market data • Turkey’s additional natural gas requi
Slide 16: AES Entek
AES Entek Capacity – 364 MW NGCC • İzmit : 160 MW • Bursa : 142 MW • 3 Hydro assets : 62 MW Strategies • AES Entek is currently pursuing a range of expansion opportunities via: 157 • Development of new efficient generation plants throughout the country Kocaeli • M&A and privatization transactions of
Slide 17: What are our priorities?
What are our priorities? Sustain LPG market leadership through • Product differentiation and innovation for autogas • Further penetration through new autogas stations • Growth prospects for cylinder in rural Turkey • Geographical diversification in neighbouring countries Utilize and expand existing
Slide 18: How do we create shareholder value?
How do we create shareholder value? Sustainable Management operating profitability from strategies core business ; LPG Resistant that focus on increasing to economic shareholder value fluctuation and crises High dividend Corporate payments governance practices at international standards Potential gr
Slide 19: Financial Highlights
Financial Highlights Net sales (m$) Gross Profit(m$) and GPM* 16% 400 2013 3.157 14% 15% 350 12% 300 2012 3.126 10% 11% 250 9% 10% 8% 9% 200 2011 3.267 358 334 6% 286 292 300 150 4% 100 2010 3.105 2% 50 2009 2.431 0% 0 2009 2010 2011 2012 2013 EBITDA(m$) and EBITDA Margin* Net Profit(m$) and NPM* 12
Slide 20: Financial Highlights
Financial Highlights Equity (m$) and Debt Ratio* Net Cash (m$) 30% 1.500 132 25% 100 20% 1.000 67 15% 10% 500 5% 0% 0 2009 2010 2011 2012 2013 (18) 2009 2010 2011 2012 2013 (25) * bars: $ figures & lines: % figures Working Capital Dividend Payout 400 99% 200 166 85% 123 141 125 82 0 2009 2010 2011 2
Slide 21: Contacts
Contacts investor@aygaz.com.tr Gökhan Tezel, CFO E-mail: gokhan.tezel@aygaz.com.tr Phone: +90 212 354 1733 Mehmet Özkan, Finance Manager E-mail: mehmet.ozkan@aygaz.com.tr Phone: +90 212 354 1657 Selin Sanver, Investor Relations Manager E-mail: selin.sanver@aygaz.com.tr Phone: +90 212 354 1659 www.ay
Slide 22: 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
Slide 23: Appendix
Appendix
Slide 24: Income Statement Summary
Income Statement Summary (m USD) 2009 2010 2011 2012 2013 Net Sales 2,431 3,105 3,267 3,126 3,157 COGS (2,073) (2,770) (2,981) (2,835) (2,857) Gross Profit 358 334 286 291 300 Operating Profit 189 145 89 93 89 Profit Before Tax 242 189 251 192 125 Net Profit 203 160 227 170 108 EBITDA 252 204 140 13
Slide 25: Balance Sheet Summary
Balance Sheet Summary (m USD) 2009 2010 2011 2012 2013 Cash & Cash Eq. 271 174 133 70 81 Trade Receivables 224 176 157 171 172 Inventories 54 105 98 122 129 Participations 669 783 663 690 645 Prop. Plant & Eq. 472 316 300 332 276 Financial Debt (289) (74) (1) (1) (106) Trade Payable (111) (199) (131