Hizmete ÖzelJune 2020
Turkey’s No. 1 Power Distribution and Retail Company Well Positioned to Capture Growth & Attractive Dividend Pay-Out
2
Successful track-record of expansion and improvement of legacy regional companies
1996
20062009
2013
2017
Establishment of Enerjisa by Sabancı
Start of 1st
Regulatory Period
Acquisition of Başkent Region
E.ON Becomes 50% Partner
Unbundling Process Initiated
Acquisition ofAyedaş andToroslar Regions
Generation and Wholesale Spin-off from Distribution and Retail
Turkey’s No.1 Electricity
Distribution and Retail Company
2016
Start of Current (3rd) Regulatory Period
2018
IPO & listing at Istanbul stockexchange
3
Turkey’s no.1 electricity distribution and retail company
Leader in an Attractive Market
26%1
11.3m Distribution Connections
9.9m Retail Customers
22%2
Supportive and Transparent Regulatory Framework
TL2.6bn Operational Earnings3
(1H 2020)
Premium Sponsors and Superior Governance
40% 40%
Free Float
Strong Historical Growth and Untapped Potential
Regulated Asset Base(TLbn)
1 Market share by number of connections as end of 2019.2 Market share by number of Retail customers as end of 2019.3 EBITDA + Capex Reimbursements excluding exceptional items.
No.1
Retail14%
Distribution86%
Regulated
20%
1.4
2.7
3.9
5.3
6.9
8.49.4
2015 20192014 20182016 1H202017
+37%
4
Enerjisa at a glance
11.3m 1H 2020 Connection
Points
232,253 km1H 2020
Network Length
16.3 TWh1H 2020 Sales
Volume
9.9m1H 2020 Customers
TL9.4bn1H 2020 RAB
Overview
Turkey’s leading electricity distribution and retail company with consolidated revenues of over TL11bn for the first half ended 30 June 2020
Successful partnership between E.ON and Sabancı, through a 50/50 joint venture since 20131
Fundamental growth from incumbent regions (Başkent, Ayedaş and Toroslar)
Successfully completed operational and financial improvement post privatizations
Total RAB of TL9.4bn as of 30 June 2020.
Retail customer base of 9.9 million (representing 22% market share)
Reta
ilD
istr
ibu
tion
1 1 1
1 1
No.1 Electricity Distribution and Retail Player in Turkey
Ayedaş
Başkent
Toroslar
Ankara(Capital)
Istanbul (Asian Side)
Adana Gaziantep
1 Post IPO E.ON and Sabancı own 40% each.
5
Significant real earnings and dividend growth
Consolidated Underlying Net Income (TLm)
Consolidated Operational Earnings(TLm)
Dividend Per Share(TL per share)
7791,100
1,9382,565
3,8454,609
2,268 2,565
20162014 2015 2017 1H202018 2019 1H19
+43% +13%
-277
70
377522
730
1,175
466
754
2014 1H192015 2016 20192017 2018 1H20
+62%
0.300.40
0.60
20182017 2019 2020
+41%
Consumer Price index (Turkey)(year-end)
Payout ratio 68% 65% 60% 60-70%
248 270 293 327 394 441 466
1H202014 2015 20192016 2017 2018
+11%
2.19 2.72 3.02 3.654.82 5.67 6.46
201820162014 2017 20192015 1H20
+20%
USD /TL(average)
6
Outlook 2020Positive trend continues
Operational Earnings
Outlook 2020 reiterated:>inflation growth
Regulated Asset Base
Outlook 2020 specified:~10bnTL
Underlying Net Income
Outlook 2020 revised upwards:>30% growth
Free Cash Flow(after interest and tax)
Outlook 2020 reiterated:>0
7
Turkey’s existing grid requires significant investments in replacement and quality…
Outage duration (SAIDI)1
(minutes per year per customer, 2016)
Transmission and Distribution Losses2
(% of output, 2018)
Existing grid requires significantreplacement investments…
3025
29
Başkent Ayedaş Toroslar Turkey’s Average
>30 years
Average age of network(years)
Cost of existing Enerjisa Network(at year-end 2019 with ~230.000 km grid length)
Maintainstatus quo
~TL850mn p.a.(2019 Prices)
Replaceentire grid
~TL46bn(2019 Prices)
Minimuminvestment
Maximuminvestment
…and quality improvements
1,788
474
260 233116 67 66 66 42 23
Rom
ania
Fra
nce
Pola
nd
Turk
ey
2018
Port
ugal
Czech R
ep.
Italy
Spain
UK
Germ
any
1 Planned and unplanned outages without exceptional events from Council of European Energy Regulators, Benchmarking Report on the Continuity of Electricity and Gas Supply 20182 World Economic Forum, The Global Competitiveness Report 2019
17.616.1
12.811.9
10.0 9.58.7
7.4 7.15.7 5.6 5.4
4.3
Bra
zil
India
Russia
Turk
ey
Rom
ania
Spain
S.
Afr
ica
UK
Fra
nce
Italy
Czech R
ep.
US
Germ
any
Distribution
8
…and is still expanding
Source: EIU, Worldbank, IMF (World Economic Outlook 2019), Company, EMRA, TEDAŞ, Eurostat.1 IMF World Economic Outlook 20192 World Bank, World Population Review3 IMF World Economic Outlook 20194 World Bank, Eurostat, EIU
…lead to significant network expansion need
One of the largest, growing, young population
One of the fastest growing European economies translating into energy demand growth
1.2%Population growth
2018-24E1
31 yearsMedian age 20182
4.2%Real GDP growth
2018-24E3
5.1%Electricity demand growth 2017-21E4
New customer connections in Enerjisa regions(000)
Turkey’s demand fundamentals…
302 310 319
374396
140
2015 2016 2017 20192018 1H 2020
Number of new connections increase 3%p.a on averageevery year.
Distribution
9
Investments have accelerated, but the asset base remains small by comparison…
Turkey Distribution investments1
(TLmn, 2019 prices)
~TL47bn has been investedin the distribution network2011-2018 (with 2019 prices)
Enerjisa investments accountfor 27% of the totalinvestment amount in thesame period
2014 201920122011 20152013
7,160
5,709
2016 2017 2018
1,806
3,434
4,660
5,681
3,760
7,9167,242
Other DSOs
Enerjisa
Asset base relative to grid size(2018 RAB in 000€/km)
Hungary
26,8
SlovakiaEnerjisaTurkey Average
Romania SwedenCzech Rep.
Germany
3,35,0
7,9
15,2 15,8
23,2 23,9
Source1 EMRA
Enerjisa compares favorablyto Turkey overall but stillsignificantly falls short ofother more developedcountries in terms ofDistribution investments
Distribution
10
…leading to a currently low system cost to the end-user
Taxes and levies
48.7%
T&L
17.4%
19.8%
6.2%Transmission fee
7.9%
Q2 2020
Distribution fee
Generation cost
100.0% = 119 TL/month1
= 17 USD/month= 2.3% GDP per capita/month2
1 based on average household consumption of ~2000 kWh/month2 2019: $9.127, TUİK-Turkish Statistical Institute.3 Electricity consumption cost per capita as a percentage of GDP per capita 20184 Eurostat and BloombergNEF
Breakdown of regulated electricity bill
~3.3 USD/month
2.3
2.4
2.5
2.5
3.0
3.3
3.4
3.5
3.7
3.8
4.0
4.2
4.6
4.9
5.3
India
Czech Rep.
Romania
Turkey
Brazil
UK
US
China
France
Italy
Spain
Poland
Japan
Germany
S. Africa
Affordability of electricity by country3
(% of GDP per capita)
Share of grid costs in electricity bill by country4
(% of transmission & distribution fee in total electricity costexcl. taxes for 2018)
32
4945
Turkey EU US
Distribution
11
Attractive home regions enhance growth potential
Enerjisa Geographic Footprint Başkent
• First Enerjisa region acquired in 2009
• Largest electricity distribution region in Turkey by grid size and geographic area
• Key urban centers: Ankara (Capital)
• Network length: 112 thousand km
• License Expiry Date: Sep 2036
• Population: 7.5 million
Ayedaş
• Acquired in a privatisation tender in 2013
• Fastest growing Enerjisa regions by electricity consumption
• Exposure to the Asian side of İstanbul (Turkey’s largest city)
• Network length: 24 thousand km
• License Expiry Date: Dec 2042
• Population: 5.5 million
Toroslar
• Acquired in a privatisation tender in 2013
• 3 large metropolitan areas: Mersin, Adana and Gaziantep
• Network length: 91 thousand km
• License Expiry Date: Dec 2042
• Population: 8.5 million (most populous of Enerjisa’s regions)
Ayedaş
Başkent
Toroslar
Ankara(Capital)
Istanbul (Asian Side)
Mersin
Gaziantep
Adana
Consumption Growth1
Population Growth2
Household Size
Turkey 3.6%
Turkey 0.6%
3.8
3.5
3.0
Western Europe 3
2.0 – 2.5
Başkent
Ayedaş
Toroslar
4.0%
4.7%
3.9%
1.0%
1.5%
0.8%
4
Source: Company, EMRA, Turkstat and Eurostat.1 Ayedaş and Toroslar annual growth rate 2016–2042, Başkent annual growth rate 2016-2036; Source: Mercados.2 Ayedaş and Toroslar annual growth rate 2016–2042, Başkent annual growth rate 2016-2036; Source: Population
growth study by Prof. Dr. Ahmet Sinan Türkyılmaz.3 Based on average household sizes in Germany (2.0), UK (2.3), France (2.2) and Spain (2.5).4 Ayedaş considers Istanbul household size (including European side) as per Turkstat.
12
Distribution regulation incentivises: investments
Regulated WACC (real)
Regulated Asset Base(TLbn)
64%
64%
1.4
2.7
3.9
5.3
6.9
8.49.4
1H202014 20172015 2016 20192018
+37%
2006-2010 2011-2015
13.61%
2016-2017
11.91%
2018-2020
9.35% 9.97%
2nd reg.period
3rd reg. period1st reg.period
Distribution OperationalEarnings Breakdown(1H 2020)
80%
Financial Incomeand Capexreimbursements
TL2.2bn
Distribution
13
Distribution regulation incentivises: efficiency
Efficiency & Quality split 2014-2019(TLm)
Distribution OperationalEarnings Breakdown(1H 2020)
TL2.2bn
64%
64%
14%
Efficiency &Quality
67
1H19201920172016
137
2014
449
2015 1H202018
605
816
902
399
315
+68%
2nd reg. period 3rd reg. period
T&L outper-formance
Capex out-performance
Quality bonus
Theft accrualcollection
Opex out-performance
Distribution
14
Retail for mass customers grows with fundamentals as long as it is mostly regulated
Retail
Regulated Mass Liberalized Mass
Sales Volume(TWh)
17.4 15.8 14.4
20.6 22.4
10.6
20152016 201920172018 1H20
Gross Margin(TL/MWh)
• Growth in customersnumbers
• Growth in consumptionper capita
• Switching to liberalizedfor eligible customersin times of higherprofitability
• Growth in electricityprice level17.7 18.7 20.9
25.0 25.830.5
20192015201620172018 1H20
Market Share(Home regions) by volume 2019(%)
93%
Enerjisa
Otherplayers
7%
Sales Volume(TWh)
3.3
8.0 7.3
1.0 0.2 0.6
201920162015 2017 1H202018
Gross Margin(TL/MWh)
• Includes sales to SMEsonly with fixedcontracts
• Strategic focus in timesof high profitability
37.1
19.39.1
15.9
76.7
20172015 1H202016 20182019
Market Share(Turkey)by volume 2019(%)
22%
78%
Enerjisa
Otherplayers
• The increase in Q1 is due to lower FID costsproviding higer margin, expected to level downby end of year
15
Retail for corporate customers requires a focus on profitable customers in an already liberal market
Retail
Regulated Corporate Liberalized Corporate
Sales Volume(TWh)
10.0
5.1
9.9
16.5
10.0
2.3
2018201520162017 1H202019
Gross Margin(TL/MWh)
• Customers switch to liberalized market as soon as lower priceoffers are available
• Growth in electricityprice level, but at much lower levelcompared to massmargins as retailservice revenuedepends on customernumber not volume
5.83.3 3.4
6.59.8 10.7
201920152016 1H2020172018
Market Share(Home regions) by volume 2019(%)
38%
62%
Enerjisa
Otherplayers
Sales Volume(TWh)
9.3
4.4 3.7 3.0 3.6 2.8
1H202015 2016 2017 2018 2019
Gross Margin(TL/MWh)
• Priority is to focus on profitable customersonly
-4.7
2.5 2.78.2
25.0
35.0
20172015 2016 2018 1H202019
Market Share(Turkey)by volume 2019(%)
9%
91%
Enerjisa
Otherplayers
16
Growth opportunities for the Retail business
Retail
Significant fundamental consumption growth still in place in Turkey…
Beyond consumption, growth is driven by liberalization via:
• Market share expansion
• Profit margin expansion
Short-term: Higher margin for less price sensitive mass customers
Long-term: Cross-selling of value-added services
Time
Competitiveness
Ayedaş
Başkent
Toroslar
Ankara(Capital)
Istanbul (Asian Side)
Mersin
GaziantepAdana
0
10
20
30
40
50
60
70
0 2 4 6 8 10 12
Germany
Brazil
Electricity consumption per capita (MWh, 2018)
GD
P p
er c
ap
ita (
US
Dk,
20
18
)
Netherlands
FranceUK
Spain
Italy
PortugalCzech Republic
China
Poland
Turkey
Romania
US
Japan
Russia
India
South Africa
17
Leverage(Financial Net Debt / Operational Earnings)
Leverage is declining quickly with fast earnings growth and the company turning cash flow positive
5.56.1 6.5
7.3
8.7 8.9
10.5
201920162014 2015 2017 1H202018
7.0x
2.8x2.3x
1.9x
201920152014 2018
5.5x
3.4x
2016 2017
Consolidated Free Cash Flow before Interest and Tax (TLm)
Financial Net Debt(TLbn)
Consolidated Free Cash Flow after Interest and Tax (TLm)
20182015
176444
2014 2016 2017 2019 1H19 1H20
-379
2520
2,547
827
-113
Operating Cash Flow (before interest & tax)
Capex
-1,023
-445-303
-775-562
-59
-1,081
2014 1H192015 20192016 2017 2018 1H20
505
18
Diversified financing mix with limited risks
Weighted average effective cost of financing(%)
Tenor split1 1H 2020Debt instrumentsplit1 1H 2020
Average remaining tenor 2 years
Bank loans are based on “name lending”,
with minimal covenants
No material FX exposure other than
~50m€ payable before hedges
Bonds are CPI-linked and therefore
match inflation exposure of business
Highest rating among Turkish electricity
companies (AA – local) by Fitch
1 Gross debt excl. ~50m€ TEDAŞ payable and lease liabilities2 The amount of bonds is including inflation valuation over principals
9.7%13.4%
2018
Loans
2015 2016 20192017 1H20
12.2% 12.8%17.1% 18.1%
10.3%
2015 2016 2017 2018
Bonds
12.9%
2019 1H20
6.7%
15.2%
28.2%
13.3%
Bank loans Bonds²
9.3(86%)
1.5(14%)
<1 year
1-2 years
0.5(4%)
2.4(23%)
2-3 years
4.3(40%)
3.6(33%)
>3 years
19
Clear priorities to harvest growth potential
Leverage Customer Base into New Services and Customer Solutions
Benefit from Retail Liberalisation
Ensure Competitive Financing Cost and Leverage
Drive Operational Excellence, Digitalise all Processes
Capitalise on Distribution Investment Opportunities
20
Key Investment Highlights
Significant growth realized & expected
Highly regulated and guaranteed income
Reliable framework, positive regulatory trend
Solid balance sheet, declining leverage
Attractive dividend pay-out
21
Appendix
22
Key financial concepts
In Turkey, Distribution companies operate under a transfer of operating rights (TOR) agreement, which meansno legal ownership of assets; legal and asset ownership remains with TEDAŞ (i.e. the state)
As a consequence, accounting for all Turkish distribution companies falls under IFRIC 12 “service concession arrangements: government or other body grants contracts for supply of public services”
Therefore, networks are accounted as financial asset instead of fixed assets in IFRS which need to be recognized at fair value under IFRIC 12
This has two important implications for the presentation of top financial KPIs:
1. IFRS P&L does not show any asset depreciation and accordingly no income from amortisation allowance (reimbursement of capital) Enerjisa uses EBITDA + Capex reimbursement as its main operational
financial KPI to capture the full regulatory, cash-effective RAB return and to increase comparability with international peers
2. Changes in long-term assumptions (e.g. Regulatory parameters) lead to changes in the fair value of thenetworks-related financial asset. These changes are IFRS P&L-effective, can be material because theyrelate to the remaining concession period and are fully non cash-effective. As a result they are treatedas exceptional items and adjusted from top financial KPIs in order to avoid time series distortions
As a result, Enerjisa defines the top financial, P&L-related KPIs as follows:
EBITDA
+ Capex reimbursements
- Exceptional items
= Operational Earnings
Reported Net Income
- Exceptional items
= Underlying Net Income
23
Summary Financial StatementsConsolidated Income Statement
Note: Consolidated numbers include the Business Units Distribution and Retail as well as the legal holding entity.
Operating profit before finance income/(expense) 308 1,038 1,272 2,241 2,811 3,064 1,524 1,666
Adjustment of depreciation and amortization 209 219 218 235 258 373 181 199
Impairment on goodwill - - - - 753 0 0 0
TradeCo-related pro-forma EBITDA adjustment 16 -60 -16 - - - - -
Adjustments related to operational fx losses - - - - 44 4 8 15
Adjustments related to deposit valuation expense 43 36 40 79 243 114 24 60
Interest income related to revenue cap regulation -5 -2 -19 0 -44 -186 -6 -20
EBITDA 569 1,232 1,495 2,555 4,065 3,369 1,730 1,920
CAPEX Reimbursements 210 200 443 592 798 1058 529 671
EBITDA+CAPEX Reimbursements 779 1,432 1,938 3,147 4,864 4,427 2,259 2,591
Fair value changes of financial assets 0 -332 0 -467 -984 230 9 0
Competition Authority penalty provision 0 0 0 0 107 0 0 0
Non- recurring income related to prior fiscal years 0 0 0 -115 -142 -48 0 0
Unrealized (temporary) MtM gains 0 0 0 0 0 0 0 -26
Operational earnings 779 1,100 1,938 2,565 3,845 4,609 2,268 2,565
Net Income -277 336 377 988 748 1,034 459 708
Fair value changes of financial assets 0 -266 0 -374 -768 179 7 0
Competition Authority penalty provision 0 0 0 0 107 0 0 0
Goodwill impairment expense 0 0 0 0 753 0 0 0
Non – recurrring income related to prior fiscal years 0 0 0 -92 -110 -38 0 0
Unrealized (temporary) MtM gains 0 0 0 0 0 0 0 -20
Non-recurring refinancing transactions fees 0 0 0 0 0 0 0 66
Underlying Net Income -277 70 377 522 730 1,175 466 754
FY FY FY FY FY FY1 January
30 June1 January
30 June
(TLm) 2014 2015 2016 2017 2018 2019 2019 2020
Sales Revenue 8,064 9,154 9,103 12,345 18,347 19,453 9,327 11,105
Cost of Sales -6,754 -7,108 -6,501 -8,412 -12,380 -14,109 -6,611 -8,050
Gross Profit 1,311 2,045 2,602 3,933 5,967 5,344 2,716 3,055
OPEX -967 -1,080 -1,228 -1,519 -1,849 -2,170 -991 -1,170
Other Income/(Expense) -36 73 -102 -173 -1,307 -110 -201 -219
Operating profit before finance income/(expense) 308 1,038 1,272 2,241 2,811 3,064 1,524 1,666
Financial Income/(Expense) -571 -575 -758 -957 -1,489 -1,673 -855 -750
Profit before tax -264 463 514 1,284 1,322 1,392 669 916
Taxation -13 -127 -137 -296 -574 -358 -210 -208
Net Income -277 336 377 988 748 1,034 459 708
24
Summary Financial StatementsConsolidated Balance Sheet
Note: Consolidated numbers include the Business Units Distribution and Retail as well as the legal holding entity.
YE YE YE YE YE YE 30 June
(TLm) 2014 2015 2016 2017 2018 2019 2020
Cash and Cash Equivalents 113 152 75 173 562 470 476
Financial Assets 313 456 654 692 791 1,099 1,739
Trade Receivables 1,471 1,545 1,721 2,382 3,512 3,009 3,439
Derivative financial instruments 0 0 0 20 313 8 190
Other Current Assets 345 379 490 810 694 1,196 1,278
Current Assets 2,242 2,532 2,940 4.077 5,872 5,782 7,122
Financial Assets 1,469 2,565 3,640 5,747 8,504 9,445 9,336
Tangible and Intangible Assets 8,281 8,103 7,949 7,841 7,104 7,177 7,076
Other Non-Current Assets 771 820 603 921 1,113 992 1,193
Non-Current Assets 10,521 11,489 12,192 14,509 16,721 17,614 17,605
TOTAL ASSETS 12,763 14,021 15,133 18,586 22,593 23,396 24,727
Short-Term Financial Liabilities 805 1,916 3,098 1,939 3,434 3,692 3,636
Other Financial Liabilities 17 21 25 30 44 51 58
Trade Payables 816 827 1,118 1,512 2,481 2,612 1,874
Payables to PA 1,238 1,188 0 0 0 0 0
Derivative financial instruments 0 0 0 2 4 67 0
Other Current Liabilities 417 629 710 1,349 1,049 909 835
Current Liabilities 3,294 4,581 4,951 4,832 7,012 7,331 6,403
Long-Term Financial Liabilities 2,098 2,878 3,200 5,269 5,765 5,378 7,339
Other Financial Liabilities 240 232 245 280 322 303 325
Payables to PA 1,176 0 0 0 0 0 0
Derivative financial instruments 0 0 0 0 8 0 0
Other Non-current Liabilities 1,915 1,964 1,989 2,325 3,187 3,549 3,745
Long-Term Liabilities 5,429 5,074 5,434 7,874 9,282 9,230 11,409
Total Share Capital 4,390 4,390 3,965 4,017 3,966 3,808 3,597
Other Equity Items 58 47 136 184 241 250 565
Retained Earnings -407 -71 646 1,679 2,092 2,777 2,753
Equity 4,040 4,366 4,747 5,880 6,299 6,835 6,915
TOTAL LIABILITIES AND EQUITY 12,763 14,021 15,133 18,586 22,593 23,396 24,727
25
Summary Financial StatementsConsolidated Cash Flow Statement
Note: Consolidated numbers include the Business Units Distribution and Retail as well as the legal holding entity.
FY FY FY FY FY FY1 January
30 June1 January
30 June
(TLm) 2014 2015 2016 2017 2018 2019 2019 2020
Profit for the period -277 336 377 988 748 1,034 459 708
Adjustments to reconcile net profit for the period 777 830 801 970 2,395 1,088 699 593
Changes in operating assets and liabilities -665 -463 -7 -988 -2,417 167 -258 -1,501
Other inflows (incl. Capex reimbursements) 311 391 833 953 1,396 1,879 874 1,152
Cash Flows from Operating Activities (before interest and tax) 146 1,095 2,004 1,923 2.122 4,168 1,774 952
Tax payments -48 -73 -145 -65 -35 -456 -225 -216
Cash Flows from Operating Activities (before interest, after tax) 98 1,021 1,859 1,858 2,087 3,712 1,549 736
CAPEX -525 -1,093 -1,560 -1,747 -1,602 -1,621 -947 -1,065
Payment to Privatization Administration -1,176 -1,225 -1,188 0 0 0 0 0
Interest received 59 31 40 65 96 122 92 5
Cash Flows from Investing Activities -1,643 -2,286 -2,709 -1,682 -1,506 -1,499 -855 -1,060
Cash in-flows and out-flows from borrowings 1,072 1,710 1,414 873 1,305 -126 1,466 1,796
Capital increase 900 0 0 0 0 0 0 0
Interest paid -655 -406 -642 -951 -1,143 -1,708 -753 -757
Dividend paid 0 0 0 0 -354 -472 -472 -709
Cash Flows from Financing Activities 1,317 1,305 772 -78 -192 -2,306 241 330
Increase in cash and cash equivalents -228 39 -78 98 389 -92 935 6
Cash and cash equivalents at the beginning of the period 341 113 152 75 173 562 562 470
Cash and cash equivalents at the end of the period 113 152 75 173 562 470 1,498 476
FY FY FY FY FY FY1 January
30 June1 January
30 June
(TLm) 2014 2015 2016 2017 2018 2019 2019 2020
Cash Flows from Operating Activities (before interest and tax) 146 1,095 2,004 1,923 2,122 4,168 1,774 952
CAPEX -525 -1,093 -1,560 -1,747 -1,602 -1,621 -947 -1,065
Free cash flow (before interest and tax) -379 2 444 176 520 2,547 827 -113
Tax payments -48 -73 -145 -65 -35 -456 -225 -216
Interest received 59 31 40 65 96 122 92 5
Interest paid -655 -406 -642 -951 -1,143 -1,708 -753 -757
Free cash flow (after interest and tax) -1,023 -445 -303 -775 -562 505 -59 -1,081
26
Distribution Income Statement
FY FY FY FY FY FY1 January
30 June1 January
30 June
(TLm) 2014 2015 2016 2017 2018 2019 2019 2020
Sales Revenue 2,144 2,778 3,477 4,934 6,986 6,599 3,307 3,996
Financial income 205 305 610 1,014 1,717 1,959 972 1,089
Distribution revenue 1,494 1,967 2,166 3,147 4,281 3,351 1,705 2,039
Pass-through transmission revenue 285 325 558 597 760 998 495 711
Lighting sales revenue 161 180 143 176 228 291 135 157
Cost of Sales -1,138 -1,172 -1,337 -1,402 -1,690 -2,029 -985 -1,373
Energy purchases (Lighting, T&L) -848 -847 -779 -795 -930 -1,024 -490 -662
Pass-through transmission cost -290 -325 -558 -597 -760 -998 -495 -711
Other 0 0 0 -10 0 -7 0 0
Gross Profit 1,006 1,605 2,140 3,532 5,296 4,570 2,322 2,623
OPEX -639 -678 -837 -1,072 -1,272 -1,563 -711 -863
Other Income/(Expense) 63 2 -87 -143 -240 -105 -223 -260
Operating profit before finance income/(expense) 430 930 1,217 2,317 3,784 2,902 1,388 1,500
Adjustment of depreciation and amortization 5 9 9 16 26 113 54 66
Adjustments related to operational fx gains and losses 0 0 0 0 44 4 8 15
Interest income related to revenue cap regulation -5 -2 -19 1 -44 -186 -6 -20
EBITDA 425 938 1,207 2,334 3,810 2,833 1,444 1,561
CAPEX Reimbursements 210 200 443 592 798 1,058 529 671
EBITDA+CAPEX Reimbursements 635 1,139 1,650 2,926 4,608 3,891 1,973 2,232
Fair value changes of financial assets 0 -332 0 -467 -984 230 9 0
Unrealized (temporary) MtM gains 0 0 0 -115 -142 -48 0 -21
Competition Authority penalty provision 0 0 0 0 8 0 0 0
Operational earnings 635 807 1,650 2,344 3,490 4,073 1,982 2,211
27
Retail Income Statement
FY FY FY FY FY FY1 January
30 June1 January
30 June
(TLm) 2014 2015 2016 2017 2018 2019 2019 2020
Sales Revenue (net) 7,780 8,921 8,495 10,520 11,361 12,854 6,017 7,109
Regulated 5,592 5,292 4,052 5,075 10,301 11,369 5,452 5,550
Liberalised 322 1,219 1,587 2,256 1,044 1,464 556 1,548
Customer solutions 0 0 0 0 16 21 9 11
Cost of Sales (-) -7,476 -8,481 -8,030 -10,109 -10,690 -12,080 -5,626 -6,677
Regulated -5,293 -4,980 -3,739 -4,740 -9,679 -10,711 -5,085 -5,201
Liberalised -322 -1,099 -1,434 -2,180 -1,003 -1,362 -538 -1,473
Pass-through grid cost -1,861 -2,402 -2,856 -3,189 0 0 0 0
Customer solutions 0 0 0 0 -8 -7 -3 -3
Gross Profit 304 440 465 411 671 774 391 432
OPEX -167 -233 -223 -253 -341 -367 -165 -194
Other Income/(Expense) -51 96 24 4 -306 -9 20 44
Operating profit before finance income/(expense) 87 303 266 161 24 398 246 282
Adjustment of depreciation and amortization 0 0 0 8 23 47 21 26
TradeCo-related pro-forma EBITDA adjustments 16 -60 -16 0 0 0 0 0
Adjustments related to fair value difference arising from deposits 43 36 40 79 243 114 24 60
Operational earnings (EBITDA) 145 280 290 247 290 559 291 368
Competition Authority penalty provision 0 0 0 0 99 0 0 0
Unrealized (temporary) MtM gains 0 0 0 0 0 0 0 -5
Operational earnings 145 280 290 247 389 559 291 363
28
Investor Relations contacts
Ilkay DemirdağHead of Investor Relations
T +90 (0) 216 579 [email protected]
Burak ŞimşekInvestor Relations
T +90 (0) 216 579 [email protected]
Delal AltunterimInvestor Relations
T +90 (0) 216 579 [email protected]
Özde ÜnsalInvestor Relations
T +90 (0) 216 579 [email protected]
29
Disclaimer
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