Aygaz Anonim Sirketi · BIST:AYGAZ

Aygaz Anonim Sirketi — Aygaz — Investor Presentation (March 2011)

39 slides from Aygaz Anonim Sirketi's investor presentation, March 2011

1. Slide 1: AYGAZ Investor Presentation

   AYGAZ Investor Presentation March 2011

2. Slide 2: Table of Contents

   Table of Contents  Aygaz Overview  LPG from A to Z = AygaZ  Aygaz as an Energy Player  Strategies and Key Takeaways  Financial Highlights  Appendix  Summary Financial Statements 1

3. Slide 3: AYGAZ; A Well Diversified Energy Holding

   AYGAZ; A Well Diversified Energy Holding •Leader in its core business: Fully integrated LPG services • #1 in Turkey, #5 in Europe • Market leader since foundation • 30% market share as Aygaz Group • 1,6 m tons sales – 2010 • $3,1 b revenue - 2010 • 8th in top industrial enterprises of TR •Diversifie

4. Slide 4: Keeping its solid performance

   Keeping its solid performance Strong financials; (Cons. in m$) 2010 2009 2008 YoYchange Revenue 3.105 2.431 2.768 28% EBITDA 204 252 261 -19% EBITDA Margin 7% 10% 9% -3 Net Profit 160 203 20 -22% Net Profit Margin 5% 8% 1% -3 Volume (000 tons) 1.607 1.574 1.321 2% Outstanding cash generation abilit

5. Slide 5: LPG from A to Z

   AYGAZ LPG from Ato Z AygaZ ft eal On the road In your home For business

6. Slide 6: LPG consumption is increasing in the world

   LPG consumption is increasing in the world 300 World LPG consumption 233 241 245 272 • Mixtures of hydrocarbons in 250 199 215 219 which butane or propane are predominant (m tons) 200 150 100 • LPG market is supply oriented 50 0 • Supply is secure as LPG is 2000 2005 2006 2007 2008 2009 2012 E extra

7. Slide 7: Turkish LPG Market is evolving

   Turkish LPG Market is evolving Turkish LPG market •3,6 m tons, #2 in Europe 68% •65 distribution companies 37% •First 6 players share 73% of the market 1.387 (000) tons 2.066 •Serving; 12 m houses 1.803 570 865 100 2,8 m cars 29% •Liberal market with regulatory body-EMRA 15% 48% 3% LPG Consumption i

8. Slide 8: Aygaz Volumes and Market Shares

   Aygaz Volumes and Market Shares total auto cylinder EMRA LPG Sector Report 2010, Aygaz

9. Slide 9: Turkish autogas market; growth story

   Turkish autogas market; growth story 2.5 TR Autogas Volumes  2.4 m tons, #2 in the world  Fuel distributors are main players 2.0  30% price advantage to gasoline 1.5 (m ton)  2.8 m cars in Turkey -2010E 1.0  37% of passenger car park  8700+ autogas stations - 2010 0.5 0.0 Price Advantage of Au

10. Slide 10: Adaptation to change as market leader

    Adaptation to change as market leader  Long-term strategy builder 30% 24% Market share vs number of  Opet partnership 25% stations share 20%  LPG is core business unlike fuel 15% 14% distributors 10%  Pioneering R&D and innovation 5%  Brand power cultivated over 50 years 0%  Highest efficiency

11. Slide 11: Autogas market dynamics

    Autogas market dynamics Conversion OEM  300.000+ conversions per year  Guaranteed conversion provided by 12 car manufacturers (34% passenger  1.000+ conversion points car market share) including:  $700 average cost  Pay back in 15.000 km * SMMT: The Society of Motor manufacturers & Traders 3,00

12. Slide 12: Turkish Cylinder market; always here

    Turkish Cylinder market; always here  Fragmented market; 65 players  Contraction slowing down  Potential growth in rural areas  Conventional areas of use  Residential (heating, bathroom, cooking)  Commercial  Camping Market  New areas of use shares  Leisure market (outside heating, barbecue

13. Slide 13: Unique expertise in cylinder market

    Unique expertise in cylinder market  Strong penetration  12.300+ points of sale  Different brands for different segments  Brand power  60% share in residential market  Market maker  CRM activities  Innovative marketing approach  Fully integrated production cycle; Gebze Plant  Cylinders, ga

14. Slide 14: Cylinder product family

    Cylinder product family Residential Camping bathroom cooking Barbecue Outside heating heating 12

15. Slide 15: Bulk LPG

    Bulk LPG  Where natural gas  Petrochemical sector started infrastructure is infeasible using LPG in Turkey  Residential  Aygaz became first and  Commercial - Industrial only seller to the sector 13

16. Slide 16: Strong distribution & transportation network

    Strong distribution & transportation network  2.086 cylinder dealers/market total 12.000+  1.226 autogas stations/market total 8.700+  5.000+ service trucks  224 tanker trucks  15.000+ employees (Aygaz+dealers) 2010 figures 14

17. Slide 17: Incomparable brand value

    Incomparable brand value  Most preferred LPG brand in Turkey since its foundation – 50 years = LPG in Turkey  Best Brands 2010 by GFK  Best Brand in LPG sector  Best Brands 2010 by KalDer  Best Brand in Cylinder LPG  SAHA Ratings – Corporate Governance Rating  One of the most transparent comp

18. Slide 18: Aygaz value chain

    Aygaz value chain Supplier Storage Autogas Station Bulk LPG Residential Customer Bulk LPG Commercial Customer Filling Cylinder Gas Dealer Cylinder Gas Customer Cylinder Distribution 16

19. Slide 19: Smart solutions for supply

    Smart solutions for supply  Flexibility creates added value  Diversification – supplier portfolio  Primary access to supply info & market dynamics Turkish LPG supply 2010 Tüpraş production Tüpraş 16% Other import imports 3% 45% Aygaz import 36% Source: AYGAZ 17

20. Slide 20: Utilization of geographical advantage

    Utilization of geographical advantage 2010 % of TR supply % of Aygaz supply 24% 16% 43% 38% 2% MED 2% 2% 4% 4% 2% 25% 38% 18

21. Slide 21: Sole fleet operator

    Sole fleet operator  Reduces logistics costs  Gives flexibility in sourcing and inventory management  Provides competitive advantage for Black Sea supply Total capacity: 40.500 cbm* *2010 figure including C&O 19

22. Slide 22: Effective logistics infrastructure

    Effective logistics infrastructure 2010  170.000 cbm fixed storage - 30% of TR  1.040.000 tons filling capacity  50.000 cbm moving storage - 60% of TR  28 plants all over Turkey 20

23. Slide 23: High logistics competency

    High logistics competency  3 different types of inventory management  LPG Mix, Autogas, Propane  Direct import to 5 different locations  Operational excellence in primary transportation  Best inventory turnover globally Inventory Turnover 22.5 12.2 11 10 9.5 9.5 1.7 Aygaz Lavera İpragaz Milanga

24. Slide 24: Aygaz Key Takeaways

    Aygaz Key Takeaways Financial Strength Brand Power Long- term Strategy Builder Consistent Market Diversifier & Leader Portfolio Investor Strong Sales & Logistics Network 22

25. Slide 25: Portfolio Architecture

    Portfolio Architecture LPGDC 24% 51% 25% 10% 36% 100% 99% 100% 100%

26. Slide 26: Natural gas distribution businesses

    LNG Distribution • Transportation and regasification • 250 industrial customers, 107MCM, 20% market share • Total natural gas market: 35-40BCM; LNG market: 0,5BCM CNG Distribution • Antalya CNG plant / Capacity: 12MCM • Sales: 3MCM Pipeline Natural Gas • Started in 2010; 2011 Planned sales: 170MCM •

27. Slide 27: Entek

    Entek Capacity - 305MW NGCC • İzmit : 160MW • Bursa : 143MW • Sales composition : 52% PMUM & 48% trade & direct customers Production and Sales - 2009 • Electricity prod. : 1.945 Gwh Energy sales : 2.046 Gwh • Steam prod. : 117 Gwh Revenue : 376 m TL 157 Kocaeli Strategies • Aygaz has signed a partne

28. Slide 28: Our priorities

    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  Offset impact of diminishing bulk

29. Slide 29: AYGAZ as an investment;

    AYGAZ as an investment; AYGAZ Mcap ISE 100 (Indexed)  Sustainable and long term 2500 cash generator 2300  Strong dividends (M TL) 2100  257 m TL ($196 m) cash 1900 dividend paid during the last 3 years 1700  100 m TL ($68 m) cash dividend paid on 2009 1500  Aygaz intends to continue •ISE Ticker

30. Slide 30: Financial Highlights

    Financial Highlights Net sales (m$) Gross Profit(m$) and GPM* 16% 400 2010 3,011 14% 350 12% 300 2009 2,431 10% 250 2008 2,768 8% 200 6% 150 2007 2,451 4% 100 2006 1,803 2% 50 0% 0 2005 3,118 2005 2006 2007 2008 2009 2010 EBITDA(m$) and EBITDA Margin* Net Profit(m$) and NPM* 12% 300 16% 400 10% 250

31. Slide 31: Quarterly Financials

    Quarterly Financials Net Sales(m$) Gross Profit(m$) and GPM* 894 25% 140 809 799 813 746 709 708 120 663 640 20% 573 100 492 518 15% 80 10% 60 40 5% 20 0% 0 EBITDA(m$) and EBITDA Margin* Net Profit(m$) and NPM* 20% 120 20% 120 100 100 15% 15% 80 80 10% 60 10% 60 40 40 5% 5% 20 20 0% 0 0% 0 * bars: $

32. Slide 32: Financial Highlights

    Financial Highlights Equity (m$) and Debt Ratio* Net Cash (m$) 50% 1,600 102 100 1,400 40% 1,200 30% 1,000 800 20% 600 2005 2006 2007 2008 -28 2009 2010 -18 400 10% -94 200 0% 0 2005 2006 2007 2008 2009 2010 -198 * bars: $ figures & lines: % figures Working Capital Dividend Payout 400 116% 273 200 1

33. Slide 33: 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 E-mail: selin.sanver@aygaz.com.tr Phone: +90 212 354 1659 www.aygaz.com.

34. Slide 34: 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

35. Slide 35: Appendix

    Appendix

36. Slide 36: Income Statement Summary

    Income Statement Summary (m USD) 2005 2006 2007 2008 2009 2010 Net Sales 3.118 1.803 2.451 2.768 2.431 3.105 COGS (2.842) (1.534) (2.140) (2.400) (2.073) (2.770) Gross Profit 276 269 312 368 358 334 Operating Profit 76 123 128 189 189 145 Profit Before Tax 85 85 317 49 242 189 Net Profit 69 252 339

37. Slide 37: Balance Sheet Summary

    Balance Sheet Summary (m USD) 2005 2006 2007 2008 2009 2010 Cash & Cash Eq. 65 470 83 268 271 174 Trade Receivables 252 132 224 175 224 176 Inventories 98 81 103 56 54 105 Participations 122 618 910 624 669 783 Prop. Plant & Eq. 461 378 610 444 472 316 Financial Debt (158) (368) (281) (296) (289) (7

38. Slide 38: Income Statement Summary

    Income Statement Summary (million TL) Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 rQ Q310/Q410 Net sales 811 810 955 1,210 1,064 1,063 1,227 1,303 8% 6% COGS -644 -680 -823 -1,086 -956 -959 -1,094 -1,148 6% 5% Gross profit 167 130 132 124 108 104 134 155 25% 16% Operating profit 117 76 72 27 50

39. Slide 39: Balance Sheet Summary

    Balance Sheet Summary (million TL) 07 08 3M 09 6M 09 9M 09 09 3M 10 6M 10 9M 10 10 rY % Cash & Cash Equivalents 97 405 232 236 244 408 302 246 302 262 -36% Trade Receivables 261 264 327 313 344 337 280 295 326 265 -21% Inventories 120 84 116 106 120 81 148 154 127 159 78% Participations 1,060 944 89

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