Slide 1: November 2021
November 2021 Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 2: Content
CONTENT A Overview G Other participations B World LPG market H Financial highlights C Turkish LPG market & Aygaz I Appendix D The LPG value chain J Glossary E Participation portfolio K Disclaimer F Natural gas L Contacts Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Pub
Slide 3: Aygaz overview
3 A Aygaz overview 2020 10.1 billion REVENUE 2,2 m tons SALES OF LPG LEADING 26%* LPG MARKET SHARE LPG DISTRIBUTOR * EMRA 2020 of TURKEY NATURAL GAS REFINERY DIVERSIFIED PARTICIPATION PORTFOLIO IN ENERGY POWER GENERATION Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Pub
Slide 4: Overview
4 > Overview SUMMARY FINANCIALS (Cons. In m TL) 2020 2019 2018 2020-2019 Change Revenue 10,145 10,211 9,554 -1% EBITDA 444 492 160 -10% Net Profit -25 273 228 -109% EBITDA Margin 4% 5% 2% -1 Net Profit Margin -0.2% 3% 2% -3 Volume (000 tons) 2,150 2,068 2,000 4% SHAREHOLDERS (%) As of 30/09/2021 PUB
Slide 5: Core business - LPG distribution
5 > Core business - LPG distribution Generic brand for LPG 27th largest industrial company of Turkey, as of 2020 Most preferred LPG brand in Turkey since its foundation Market leader with 3 brands AYGAZ VOLUMES (000 tons) MARKET SHARES (%) 42 35 32 47 38 933 1,025 993 1,158 907 41 22 792 759 730 734
Slide 6: World LPG market
6 B World LPG market WORLD LPG CONSUMPTION (m tons) 2020 317 2019 325 • Despite the consistent growth for a 2018 315 decade, global LPG demand contracted by 2017 302 2.6% YoY in 2020 due to pandemic effects. 2016 299 2015 279 • 300 billion USD business size worldwide 2014 272 • Sources of LPG produc
Slide 7: World LPG consumption
7 > World LPG consumption World LPG Consumption World LPG Consumption By Sectors (%) By Regions (%) 44 46 Asia Pasific Domestic 1 28 4 15 Agriculture Chemical Africa North America 9 10 9 16 Refinery Industry S.&C. America Europe&Eurasia 8 10 Autogas Middle East WLPGA Statistical Review of Global LP
Slide 8: Prices of LPG and Brent
8 > Prices of LPG and brent 100 661 600 538 493 75 66 64 67 63 75 450 57 407 66 73 469 375 330 $/barrell $/ton 50 378 380 437 40 300 304 41 50 25 32 248 150 0 0 SP (Algeria) Petroleum (Brent) • There is a correlation between LPG and oil price • Seasonality can also affect LPG price • September 2021
Slide 9: Turkish LPG market
9 C Turkish LPG market LPG consumption in Europe (m ton) 3.9 m tons #2 in Europe #10* in the World RUSSIA 4.4 ~90 distribution companies TURKEY 3.9 Leading 3 players in the cylinder market and first 8 players in the autogas market hold over ITALY 2.9 80% of the total market POLAND 2.2 Liberal market
Slide 10: LPG market ranking
10 > LPG market ranking 1- ITALY 1.4 m tons 2- RUSSIA 0.9 m tons 3- SPAIN 0.9 m tons 4- FRANCE 0.9 m tons 5- TURKEY 0.7 m tons THE 5th BIGGEST DOMESTIC LPG MARKET IN EUROPE 1- RUSSIA 3.2 m tons 2- TURKEY 3.1 m tons 3- SOUTH KOREA 2.7 m tons 4- UKRAINE 1.9 m tons 5- POLAND 1.7 m tons THE SECOND BIGGE
Slide 11: Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 12: Cylinder market starting to stabilize
12 > Cylinder market starting to stabilize CYLINDER MARKET RATES OF CHANGE (YoY) 4% Turkish 821 812 2% market 750 729 0 (000 tons) 718 -2% -4% -6% Aygaz 342 335 -8% 315 302 -10% 297 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 TURKISH MARKET AYGAZ Increasing residential demand during the lock-d
Slide 13: Leader of cylinder LPG market
13 > Leader of cylinder LPG market CYLINDER MARKET SHARES • Generic brand AYGAZ 41.3% • Market maker • Largest dealer network with high sales efficiency İpragaz 29.2% • 60% market share in residential use Oyak Group* 19.0% • Fully integrated production cycle; Cylinder Other 10.5% and gas appliances
Slide 14: Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 15: World's 2nd biggest autogas market
15 > World’s 2nd biggest autogas market AUTOGAS MARKET RATES OF CHANGE (YoY) 6% 3,354 4% Turkish 3,142 3,283 2% market 3,117 3,065 0 -2% (000 tons) -4% -6% Aygaz 792 -8% 759 730 734 -10% 664 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 TURISH MARKET AYGAZ Factors affecting autogas market; • 30%
Slide 16: Price economy of autogas
16 > Price economy of autogas 30%+ 50% 40% 30% 20% 10% 0% -10% -20% -30% price advantage -40% to gasoline Jul-17 Jun-15 Jun-20 Nov-15 Nov-20 Apr-16 May-18 Aug-19 Jan-15 Sep-16 Feb-17 Dec-17 Mar-19 Jan-20 Oct-18 To gasoline To diesel PUMP PRICE OF AUTOGAS ACROSS THE WORLD (%) 39 NETHERLANDS 50 Ratio
Slide 17: Autogas; most widely-used passenger car fuel of Turkey
17 > Autogas; most widely-used passenger car fuel of Turkey RATIO OF CARS REGISTERED TO TURKISH CAR PARK (m cars) TRAFFIC ACC. TO FUEL TYPE 4.8 5.0 4.4 4.6 4.7 4.7 4.8 39% 3.8 4.3 4.6 75% 5% 3.1 3.1 3.1 3 3.2 15% 37% 24% 2016 2017 2018 2019 2020 2004* 2020 GASOLINE DIESEL AUTOGAS GASOLINE DIESEL AUT
Slide 18: Leader of the autogas market in Turkey
18 > Leader of the autogas market in Turkey AUTOGAS MARKET SHARES MARKET SHARE & STATION NUMBER SHARE (%) 21.7 MARKET SHARE AYGAZ 21.7% STATION NUMBER SHARE PO 12.7% 16 SHELL 11.2% 1312.7 11.2 9.4 OYAK GROUP* 9.4% 8 8 8 7.5 6.2 6 5.2 BP 7.5% 4 4 2.4 SHV GROUP** 6.2% PO OYAK GROUP BP SHV GROUP SHELL
Slide 19: Autogas car park growth
19 > Autogas car park growth Autogas 1,000+ conversion points conversions OEM; original equipment $500 average cost of conversion manufacturer Payback in 15,000 km • Some major car manufacturers are providing guaranteed conversion currently AUTOGAS CONVERSIONS (m cars) 12.5 13.1 12.4 11.3 12 4.7 4.7
Slide 20: The LPG value chain
20 D The LPG value ~300 1,736 auto gas stations chain tankers 1,000,000 vehicles using Aygaz Otogaz Moving&floating Fixed storage storage capacity capacity of of 37,000 m3 178,400 m3 ~2,300 bulk gas customers 3 LPG ships 2.2 million belonging to tons of LPG the fleet of supply Anadoluhisarı Tankerci
Slide 21: Competitive supply chain
21 > Competitive supply chain BIG PLAYER ADVANCED MODEL • #1 purchaser in Mediterranean • Direct imports to 5 different locations • #1 importer in Turkey • Most diversified supply portfolio in Turkey • #1 LPG exporter in Turkey Diversified supplier & origins • #1 storage owner in Turkey Diversified
Slide 22: Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
22 Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 23: Participation portfolio
23 E Participation Anadoluhisarı Akpa Marketing portfolio Shipping 100% 100% Aygaz Opet-Aygaz Naturalgas Real Estate 100% 50% Bal Kaynak** Entek Water Electricity 100% 50% Sendeo*** EYAŞ* Distribution 20% 55% *EYAŞ owns 51% of the shares of TÜPRAŞ ** 100% of the company shares are owned by Aygaz A.Ş
Slide 24: Natural gas
24 F Natural gas LNG SALES Transportation 17% market share, 2020 sales: and regasification 300 industrial 73 mcm customers SALES VOLUME (mcm) PIPELINE NATURAL GAS SALES 1.279 Started in 2020 sales: 961 2010 475 mcm 827 694 475 PROJECTS LNG & Pipeline gas import 100 105 77 79 73 2016 2017 2018 2019 2
Slide 25: Other participations
25 G Other participations POWER GENERATION SALES AND MARKETING Direct sale of cylinder gas and carboy TOTAL INSTALLED CAPACITY: 436 MW water throughout Turkey Natural Gas Fuel trade at its fuel stations Combined Cycle (NGCC): 112 MW 8 Hydro Assets: (HEPP): 265 MW Wind powered plant 60 MW STRATEGY OP
Slide 26: Long term strategic plan of Aygaz
26 > Long term strategic plan of Aygaz TURKEY LPG SUPPLY&DISTRIBUTION 1 To create sustainable value while keeping our leadership in Turkish LPG market NEW BUSINESS MODELS OVERSEAS LPG To develop new business SUPPLY&DISTRIBUTION lines through utilizing To become an international Aygaz brand and platf
Slide 27: Bangladesh Investment - United Aygaz LPG Ltd.
27 > Bangladesh Investment - United Aygaz LPG Ltd. • Bangladesh average GDP growth rate between 2015-2020 is 11% and it is one of the most densely populated countries in the world. Bangladesh LPG Market 165 million 148 K ton CAGR 55% ~ 1 million ton 2015 2020 85% domestic consumption • Aygaz aims to
Slide 28: Bangladesh Investment – United-Aygaz LPG
28 > Bangladesh Investment – United-Aygaz LPG • Bangladesh LPG market reached 1.2 million tons in 2020 up by 28% YoY which makes it the fastest growing LPG market in the world with a CAGR growth rate of 52% for the previous 5 years. • Initial facility investment in Chittagong including sphere and cy
Slide 29: Parcel Delivery - Sendeo Dağıtım Hizmetleri A.Ş.
29 > Parcel Delivery- Sendeo Dağıtım Hizmetleri A.Ş. (previous title: Aygaz Aykargo Dağıtım Hizmetleri A.Ş.) • Turkish e-commerce sector had grown by 35% on average between 2015 and 2019. In 2019 sector growth reached 39% YoY. In 2020 it is further up by 66% YoY with the impacts of the pandemic. • C
Slide 30: Parcel Delivery - Sendeo Dağıtım Hizmetleri A.Ş.
30 > Parcel Delivery- Sendeo Dağıtım Hizmetleri A.Ş. (previous title: Aygaz Aykargo Dağıtım Hizmetleri A.Ş.) • On September 2, 2021, the title of Aykargo was changed to Sendeo Dağıtım Hizmetleri A.Ş. (“Sendeo”), and its capital has been increased to 143.5 million TL. • Following Istanbul operations
Slide 31: Aygaz key takeaways
31 > Aygaz key takeaways Consistent Brand Long-term Diversifier Market Power Strategy & Portfolio Leader Builder Investor Strong Sales & Financial Logistics Network Strength STRATEGIC PRIORITIES Sustain its market leadership in LPG by; • Investing in the future with the responsibility of being the i
Slide 32: Shareholder value
32 > Shareholder value BIST Code AYGAZ STRENGTHS • Sustainable operating profitability from core business; LPG Bloomberg Code AYGAZ.TI • Resistant to economic fluctuations and crises Reuters Code AYGAZ.IS • Regular dividend payments IPO Date 13.01.1988 Free Float Rate 24.3% • Corporate governance pr
Slide 33: Financial highlights
33 H Financial highlights 10,211 10,145 REVENUE (m TL) 9,554 8,469 6,749 2016 2017 2018 2019 2020 Revenue figure fluctuations are mainly due to; • FX rate changes • Commodity price changes Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 34: Financial highlights
34 > Financial highlights GROSS PROFIT AND GPM EBITDA AND EBITDA MARGIN 9% 9% 12% 5% 4% 9% 6% 7% 4% 957 912 2% 492 787 741 394 444 634 352 160 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 EBITDA EBITDA MARGIN GROSS PROFIT GROSS PROFIT MARGIN NET PROFIT AND NPM PROFIT MARGINS 7% 12% 10% 6% 8% 6%
Slide 35: Financial highlights
35 > Financial highlights NET CASH (m TL) WORKING CAPITAL (m TL) 400 -63 324 183 348 263 2016 671 -380 475 187 577 230 440 228 566 251 247 -582 -604 -753 -471 -560 -579 2017 -670 -824 2016 2018 2019 2017 2019 2020 TRADE PAYABLES TRADE RECEIVABLES 2020 2018 INVENTORY WORKING CAPITAL CURRENT RATIO RET
Slide 36: Financial highlights
36 > Financial highlights (m TL) 9M 2021 6M 2021 3M 2021 12M 2020 Debt Profile as of 30/09/2021 ST Borrowings 108 94 240 221 TL Bond; 966 862 432 346 6% Current portion of LT Borrowings LT Borrowings 824 845 1,079 997 TL Loan; Total Financial Debt 1,898 1,801 1,751 1,564 94% Cash and cash equivalent
Slide 37: Risk Policy
37 > Risk Policy FX & Interest •Zero FX exposure target after natural hedges (ie. LPG inventories) •Portfolio with fixed/variable interest rates Rate Risk •Proactive management of FX and interest rate with derivatives Leverage & Limits for financial ratios and active liquidity risk management: •Net
Slide 38: Sustainability Efforts - ESG
38 > Sustainability Efforts - ESG • Member of Koç Group who has committed to be Carbon Neutral by 2050 in line with the European Green Deal. • LPG is a cleaner product compared to other fossil fuels and Aygaz’s main product line autogas offers lower carbon emission. • First Turkish energy company pu
Slide 39: Appendix
39 I Appendix Bu doküman Genel olarak sınıflandırılmıştır. This document is classified as Public.
Slide 40: Income statement summary
40 1 Income statement summary (m TRY) 2016 2017 2018 2019 2020 Revenue 6,749 8,469 9,554 10,211 10,145 COGS (5,962) (7,728) (8,920) (9,254) (9,233) Gross Profit 787 741 634 957 912 Operating Profit 308 265 71 365 288 Profit Before Tax 469 621 250 306 31 Net Profit 416 577 228 273 -25 EBITDA 394 352
Slide 41: Balance sheet summary
41 2 Balance sheet summary (m TRY) 2016 2017 2018 2019 2020 Cash & Cash Eq. 568 593 648 665 961 Trade Receivables 475 577 440 566 671 Inventories 183 324 348 263 400 Inv. Acc. Under Equity Method 1,922 2,273 2,305 2,059 1,847 Prop. Plant & Eq. 658 678 687 713 696 Financial Debt (630) (973) (1,401) (
Slide 42: Quarterly Financials – Q3 2021
42 3 Quarterly Financials – Q3 2021 QUARTERLY / (YoY) Revenue 4,768 Million TL 57% Gross profit 433 Million TL 28% Operating profit 193 Million TL 12% EBITDA (incl. other op. inc/exp) 240 Million TL 14% EBITDA (excl. other op. inc/exp) 241 Million TL 16% Net profit 321 Million TL 289% • Gross and op
Slide 43: Aygaz LPG Sales (Quarterly)
43 4 Aygaz LPG Sales (Quarterly) (000 tons) 800 712* 700 619* 602* 535* 441* 600 500 400 311 400 360 320 206 300 200 216 222 162 142 151 100 8 9 9 9 9 84 71 64 76 81 0 cylinder bulk auto international, wholesale and trading Q3 2021 sales volumes were realized as; 222 thousand tons in Autogas (+3% Yo
Slide 44: Market Shares
44 5 Market Shares CYLINDER AUTOGAS 41.6% As of August 2021 EMRA report, Aygaz cylinder and autogas market shares are 41.6% and 21.7% respectively. 21.7% (41.5% and 21.5% in August 2020) AUGUST 2021 Turkish LPG Demand (000) tons According to August 2021 EMRA report, Total 2.595 2.562 • Turkish autog
Slide 45: Subsidiaries and Affiliates
45 6 Subsidiaries and Affiliates Subsidiaries Principal activity Participation Anadoluhisarı Tankercilik A.Ş Shipping 100% Kandilli Tankercilik A.Ş. Shipping 100% Kuleli Tankercilik A.Ş. Shipping 100% Kuzguncuk Tankercilik A.Ş. Shipping 100% Akpa Day. Tük. Lpg ve Akar. Ürün. Paz. A.Ş. Marketing 100%
Slide 46: Subsidiaries and Affiliates
46 > Subsidiaries and Affiliates Affiliates Principal activity Participation Enerji Yatırımları A.Ş. Energy 20% Entek Elektrik Üretimi A.Ş. Electricity 50% Opet Aygaz Gayrimenkul A.Ş. Real Estate 50% United Aygaz LPG Ltd - Bangladesh LPG distribution 50% Financial Assets Principal activity Participa
Slide 47: Forward looking statements for 2021
47 7 Forward looking statements for 2021 • Cylinder: 285-295 thousand tons Sales volume • Autogas: 670-700 thousand tons (previous 690-720 thousand tons*) • Cylinder: 41.0%-43.0% Market share • Autogas: 21.5%-22.5% (*)Our autogas sales volume expectations are updated due to the impact of increased e
Slide 48: Glossary
48 J Glossary LPG Liquid Petroleum Gas EMRA Energy Market Regulatory Authority WLPGA World LPG Association SP Sonatrach Price PETDER Petroleum Industry Association FOB Free On Board CIF Cost, Insurance & Freight Med Mediterranean VLGC Very Large Gas Carrier EYAŞ Enerji Yatırımları A.Ş. LNG Liquid Na
Slide 49: Disclaimer
49 K Disclaimer • This presentation may contain 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 varia
Slide 50: Contacts
50 L Contacts investorrelations@aygaz.com.tr gokhan.dizemen@aygaz.com.tr Gökhan Dizemen, CFO +90 212 354 1764 sebnem.yucel@aygaz.com.tr Şebnem Yücel, Finance and Risk Director +90 212 354 1510 selin.sanver@aygaz.com.tr Selin Sanver, Investor Relations Manager +90 212 354 1659 www.aygaz.com.tr Bu dok