Aygaz Anonim Sirketi · BIST:AYGAZ
Aygaz Anonim Sirketi — Aygaz A.Ş. — Investor Presentation (May 2006)
54 slides from Aygaz Anonim Sirketi's investor presentation, May 2006
Slide 1: Aygaz A.Ş. Presentation to Investors
AYGAZ A.Ş. Presentation to Investors COMPANY LOGO
Slide 2: 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 3: Agenda
Agenda ■ Profile ■ Brief Overview ■ Key Figures ■ Investment Theme ■ Strategy ■ Competitive Advantages ■ Annex – Financials and Other Data 3 COMPANY LOGO
Slide 4: Agenda: Profile
■ Profile ■ Brief Brief Overview Overview ■ Key Key Figures Figures ■ Investment Investment Theme Theme ■ Strategy Strategy ■ Competitive Competitive Advantages Advantages ■ Annex Annex –– Financials Financials and and Other Other Data Data 4 COMPANY LOGO
Slide 5: Brief History
Brief History Established in 1961 Market leader since its foundation Pioneer in LPG appliances launches Pioneer in marine LPG transportation in Turkey The largest LPG distribution network in Turkey serving from 28 plants to +3000 points of sale 5 COMPANY LOGO
Slide 6: Operations-KPIs
Operations-KPIs Key Performance Indicators Operations ¾ LPG related services Consolidated (US$m ) 2005 2004 ¾ LPG appliances Total Revenues 3,115 2,820 ¾ Leader in its sector Total Assets 1,186 985 Total Equity 690 595 ¾ Market Share : 31 % EBITDA 155 103 Net Profit 67 46 ¾ Size of Business : 1,25 M
Slide 7: Agenda: Brief Overview
■ Profile Profile ■ Brief Overview ■ Key Key Figures Figures ■ Investment Investment Theme Theme ■ Strategy Strategy ■ Competitive Competitive Advantages Advantages ■ Annex Annex –– Financials Financials and and Other Other Data Data 7 COMPANY LOGO
Slide 8: LPG Consumption in the World
LPG Consumption in the World 290 231 196 168 137 1990 1995 2000 2005 2015 million tons/year 8 COMPANY LOGO
Slide 9: LPG Markets in Europe
LPG Markets in Europe 4,0 3,5 3,0 million tons/year 2,5 2,0 1,5 1,0 0,5 - Greece United Germany Poland Spain France Italy Turkey Kingdom Turkey; Largest in Europe 9 *2005 Statistical Review of Global LP Gas COMPANY LOGO
Slide 10: Aygaz on European Scale (2004)
Aygaz on European Scale (2004) Sales in Europe (million tons/year) SHV 3.5 Repsol 2.2 Shell 2.0 Total 1.5 AYGAZ 1.2 5th largest LPG company in Europe 10 COMPANY LOGO
Slide 11: Turkish LPG Market
Turkish LPG Market 52 registered distribution companies More than 15,000 authorized dealers Shell gaz 5% BP Gaz 6% Total gaz 6% Demirören Around 30,000 subsidiary dealers 13% Others 25% Primagaz 50,000 vehicle service chain 16% Aygaz 31% 450,000 people employed 13 million households and 1.2 mil
Slide 12: Cylinder Business Model
Cylinder Business Model 12 COMPANY LOGO
Slide 13: Agenda: Key Figures
■ Profile Profile ■ Brief Brief Overview Overview ■ Key Figures ■ Investment Investment Theme Theme ■ Strategy Strategy ■ Key Key Competitive Competitive Advantages Advantages ■ Annex Annex--Financials Financials and and Other Other Data Data 13 COMPANY LOGO
Slide 14: LPG Market and Aygaz in Turkey
LPG Market and Aygaz in Turkey Domestic Market 5.000 000 tons/year 4.000 2.132 000 tons 3.000 1.800 1.803 1.733 1.709 1.802 2.115 2.000 1.069 1.571 806 724 570 458 647 1.183 1.000 1.270 1.390 893 1.277 1.188 1.246 1.282 1.234 1.176 1.147 1.501 1.387 355 - 1999 2000 2001 2002 2003 2004 2005 Auto Bulk
Slide 15: Aygaz Sales Figures
Aygaz Sales Figures Domestic Market 1800 1600 232 1400 000 tons/year 31 42 267 59 1200 264 520 291 1000 442 366 415 376 800 348 257 201 159 600 400 797 820 708 665 641 637 590 200 0 1999 2000 2001 2002 2003 2004 2005 Cylinder Bulk Auto Wholesale 15 COMPANY LOGO
Slide 16: Aygaz Revenue Figures
Aygaz Revenue Figures Net Sales (million usd) 1.416 1.288 1.063 1.206 1.135 966 750 687 678 734 517 2000 2001 2002 2003 2004 2005 Domestic Sales Total with international sales 16 COMPANY LOGO
Slide 17: Aygaz Revenue Figures: Export Revenue
Aygaz Revenue Figures Export Revenue (million usd) 250 200 20 40 150 23 18 100 17 16 146 110 50 62 12 0 3 2002 2003 2004 2005 Iraq exports Europe exports Appliances 17 COMPANY LOGO
Slide 18: Agenda: Investment Theme
■ Profile Profile ■ Brief Brief Overview Overview ■ Key Key Figures Figures ■ Investment Theme ■ Strategy Strategy ■ Competitive Competitive Advantages Advantages ■ Annex Annex –– Financials Financials and and Other Other Data Data 18 COMPANY LOGO
Slide 19: Changing Market Conditions
Changing Market Conditions Elimination of automatic price mechanism + New LPG law Aygaz-Price maker Higher Margins Marketing Efforts Service/Product Differentiation 19 COMPANY LOGO
Slide 20: Products & Service Differentiation
Products & Service DIFFERENTIATION New Service Concepts New Products Credit Cards Call Center Cylinder Integrated Ordering System Auto CRM Activities Other 20 COMPANY LOGO
Slide 21: Synergy Effects
Synergy Effects TÜPRAŞ can be used as a production hub for distribution business In line with the Petroleum Market Law, extra terminal advantages will be available through Opet and Aygaz, expanding the coverage in the hinterland area Aygaz’s fleet of tanks might support the distribution capabi
Slide 22: Synergy Effects
Synergy Effects Auto LPG market share will improve through Opet stations. 582 Opet + 638 Sunpet stations Owning a secondary brand in LPG distribution gives Aygaz a strong tool for differentiation. Koç Statoil, operating in LNG and CNG carries the potential to gain the customers lost from LPG
Slide 23: Agenda: Strategy
■ Profile Profile ■ Brief Brief Overview Overview ■ Key Key Figures Figures ■ Investment Investment Theme Theme ■ Strategy ■ Competitive Competitive Advantages Advantages ■ Annex Annex--Financials Financials and and Other Other Data Data 23 COMPANY LOGO
Slide 24: Vision
Vision Business Vision Aygaz aspires to be the leading and most reliable LPG-related service provider in Europe through carrying its high quality products and services to international markets. 24 COMPANY LOGO
Slide 25: Objectives
Objectives Principle Objectives Maintaining market leadership with annual sales volume of 1,250,000 tons Improving market share in eastern part of Turkey Increasing Auto LPG market share to 30% Achieving higher volumes in wholesale business Targeting efficiency in all business units Achi
Slide 26: Agenda: Competitive Advantages
■ Profile Profile ■ Brief Brief Overview Overview ■ Key Key Figures Figures ■ Investment Investment Theme Theme ■ Strategy Strategy ■ Competitive Advantages ■ Annex Annex--Financials Financials and and Other Other Data Data 26 COMPANY LOGO
Slide 27: Aygaz Brand Portfolio
Aygaz Brand Portfolio Well known/generic brand name = LPG Best known brand in LPG market; 3rd in “Top of Mind Brands” in Turkey* Strong image of safety and customer reliance Secondary LPG Brands *AC Nielsen Survey 27 COMPANY LOGO
Slide 28: Strong Dealer Network
Strong Dealer Network Long term partnership More than 2000 points of sale Wide spread distribution channel Financially strong, well known dealers Business partners of other Koc Group companies - group loyalty 28 COMPANY LOGO
Slide 29: Consistent Market Leadership
Consistent Market Leadership Market Leader since its foundation Fully integrated LPG distribution company Aygaz is the price maker Utilize premium service&product quality by pricing Belongs to Koç Group; Turkey’s biggest holding 29 COMPANY LOGO
Slide 30: Closest to the Consumer
Closest to the Consumer One of the leading Companies in Koç Group Great importance on being consumer oriented Reaching over 5 million houses and 200,000 vehicle owners through sales and after sales organization CRM activities (Peppers & Rogers) Customer satisfaction and loyalty surveys 30
Slide 31: Effective Logistics Infrastructure
Effective Logistics Infrastructure 1.040.000 tons filling capacity 150.101 m3 fixed storage capacity 14.492 m3 moving storage capacity ― Marine fleet / Truck fleet / Railway cars Largest LPG distribution network in Turkey with ―2,260 Cylinder LPG Dealers ―800 Autogas Stations ―5,000 Service
Slide 32: Facilities and Storages
Facilities and Storages LÜLEBURGAZ 548 m3 AMBARLI 24.100 m3 SAFRANBOLU 230 m3 YARIMCA SAMSUN BURSA 26.715 m3 12.230 m3 1.875 m3 KIRIKKALE E.ŞEHİR ALİAĞA 3.264 m3 2.460 m3 18.958 m3 DİYARBAKIR IŞIKKENT 1.115 m3 ISPARTA 1.069 m3 920 m3 DÖRTYOL 33.315 m3 Total filling capacity 1.040.000 ton/year Total
Slide 33: Aygaz Vessel Fleet
Aygaz Vessel Fleet Helps reducing logistics costs Gives flexibility in sourcing and inventory management Aygaz-4 3470 cbm-SR Aygaz-6 33 5000 cbm COMPANY LOGO
Slide 34: Purchasing Power
Purchasing Power AYGAZ is the biggest importer in Turkey LPG purchaser in Mediterranean* in LPG handling in Europe* player in Black Sea * When purchasing for a single country 34 COMPANY LOGO
Slide 35: Turkish LPG Supply (2005)
Turkish LPG Supply (2005) 42% 17% 15% 26% Tüpraş-production Tüpraş-import Domestic Market Export Aygaz-import Others-import 20% TOTAL- 4,35 Million Tons 80% 35 COMPANY LOGO
Slide 36: Aygaz LPG Supply
Aygaz LPG Supply 2004 2005 2006 (est) K ton % K ton % K ton % Tüpraş 447 33 343 24 320 21 Direct 1,065 67 1,096 76 1171 79 Import Total 1,512 100 1,439 100 1,491 100 36 COMPANY LOGO
Slide 37: Contacts
Contacts Mehmet Ali Neyzi General Manager 90 212 354 1515 [email protected] Mehmet Özkan Selin Sanver Finance Manager Finance Specialist 90 212 354 1657 90 212 354 1659 [email protected] [email protected] 37 COMPANY LOGO
Slide 38: Thank You
Thank You 38 COMPANY LOGO
Slide 39: Agenda: Annex
■ Profile Profile ■ Brief Brief Overview Overview ■ Key Key Figures Figures ■ Investment Investment Theme Theme ■ Strategy Strategy and and Plans Plans ■ Competitive Competitive Advantages Advantages ■ Annex-Financials and Other Data 39 COMPANY LOGO
Slide 40: Annex
Annex ■ Summary P&L Statement ■ Summary Balance Sheet ■ Shareholder Structure ■ Participations ■ Koç Energy Group 40 COMPANY LOGO
Slide 41: Summary P&L Statement
Summary P & L Statement PROFIT & LOSS STATEMENT (IAS29) (mio USD) 2000 2001 2002 2003 2004 2005 NET SALES 518 687 750 1,063 1,288 1,416 GROSS PROFIT 99 92 91 98 101 144 OPERATING PROFIT 42 41 33 20 28 42 EBITDA 73 74 71 68 63 97 EBITDA MARGIN (%) 14,1 10,7 9,5 6,4 4,9 6,9 PROFIT BEFORE TAX 68 32 55
Slide 42: Summary Balance Sheet
Summary Balance Sheet BALANCE SHEET (IAS29) (mio USD) 2000 2001 2002 2003 2004 2005 CASH&CASH EQUIVALENTS 47 28 54 55 30 34 TRADE RECEIVABLES 48 42 46 55 77 141 INVENTORIES 26 25 37 41 64 63 PARTICIPATIONS 80 69 174 265 336 379 PROP. PLANT&EQUIPMENT 187 183 196 247 276 277 FINANCIAL DEBT 0 0 0 0 5 1
Slide 43: Shareholder Structure
Shareholder Structure Liquid Pet. Dev. Co. Publicly Held 18,0% 30,8% 10,5% Other Koç 40,7% Companies Koç Holding 43 COMPANY LOGO
Slide 44: Participations
Participations IAS Book Value Share % * ( million USD)* Koç Energy Companies 278 BOS 97,4 43 Mogaz 71,2 41 Opet Aygaz BV 50,0 8 Opet 40,0 179 Akpa 15,3 3 Entek 5,1 3 Other Koç Companies 61 TOTAL 339 *Aygaz only (as of 12/05) 44 COMPANY LOGO
Slide 45: Koç Energy Companies
Koç Energy Companies Koç Energy Group Business Unit 1 Business Unit 2 Business Unit 3 Business Unit 4 Business Unit 5 LPG & Electricity Mining Retailing Fuel Retailing Industrial & & Refining Gases Natural Gas Entek Eltek 45 COMPANY LOGO
Slide 46: Mogaz
Mogaz •71.2% shares held by AYGAZ •Koç Group’s second LPG company, active in all the three LPG segments •Distributing secondary LPG brands • Mogaz • Lipet •Market Share: 5.5% •600 dealer network •349 stations selling Mogaz/Lipet auto LPG 46 COMPANY LOGO
Slide 47: BOS
BOS •Second largest medical and industrial gas company in Turkey • Market Share: 18% •Formed originally as a 50%-50% joint venture between Koç Group and British Oxygen Company (BOC) of UK •As of March 2004, 50% shares belonging to BOC are acquired by AYGAZ • 100% Koç Company • 97.4% shares belong to
Slide 48: Opet
Opet •A 50%-50% Joint Venture between Koç Group and Öztürk family •4th largest fuel retail company in Turkey •Also active in lubricants production and marketing, marine bunkering, and international fuel trade •Revenue: $ 3.4 billion •Service Stations: 1,220 •2nd largest storage capacity: 330,000 m3
Slide 49: Opet
Opet Volumes (000 MT) 2004 2005 Change % White Products 16.456 16.411 0,3 (Gasoline & Diesel) Black Products 4.473 3.918 (12) (HHO & Fuel Oil) Total Market Size 20.929 20.329 (3) 49 COMPANY LOGO
Slide 50: Opet
Opet January 2004 – January 2005 Market Shares (%) White Products 35 33,5 33,4 30 25 20 15,6 15,5 14,6 14,4 15 12,7 11,5 10 7,8 7,5 7,1 7,0 5 0 P.O. SHELL B.P. OPET TOTAL TURCAS 2004 2005 50 *White Products: gasoline & diesel COMPANY LOGO
Slide 51: Opet
Opet January 2004 – January 2005 Market Shares 48,9 Black Products 50 45 39,5 40 35 30 25 20,3 20 16,5 15,3 14,5 15 10 6,5 5,3 5,8 4,6 3,4 3,5 5 0 P.O . O PET B.P. AYTEMİZ SHELL TO TAL 2004 2005 51 *Black Products: fuel-oil & home heating oil COMPANY LOGO
Slide 52: Opet/Aygaz Bulgaria
Opet/Aygaz Bulgaria •A 50%-50% Joint Venture between AYGAZ and OPET, active in Bulgarian LPG and fuel retail markets •17 stations operating in 7 cities •Investment plan: • 33 stations by the end of 2006 • € 25 million investment in 3 years 52 COMPANY LOGO
Slide 53: Entek
Entek •Koç Group’s independent power producer operating two plants in Entek Bursa and İzmit •Supply of electricity to Koç Group companies and other direct customers •Type of Fuel: Natural gas •Installed Capacity: 220 MW •Capacity expansion in progress to reach 300 MW by the end of 2005 •5.1% shares
Slide 54: Akpa
Akpa •Active in LPG distribution and consumer durables retailing •An extensive retail network covering 5 big cities in Turkey •The largest distributor of AYGAZ, Beko and Arçelik •15.3% shares held by AYGAZ 54 COMPANY LOGO