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Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. Analyst Meeting June 2011.

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Presentation on theme: "Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. Analyst Meeting June 2011."— Presentation transcript:

1 Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. Analyst Meeting June 2011

2 2 Contents  Ciner Group in Brief3  Park Elektrik Overview6  Operations10  Planned Investments18  Financial Structure21  Evaluation of The Latest Financial Tables31  Future Prospects39 VIII.Corporate Governance Rating40 Park ElektrikJune 2011

3 Park Elektrik3 I.Ciner Group in Brief Park ElektrikJune 2011

4 Park ElektrikJune 20114 Ciner Group, Introduction  Park Holding is controlled by Ciner Group, which is solely owned by Mr. Turgay Ciner. Ciner Group’s history goes back to 1978 when it was founded.  Ranking among the largest Groups of Turkey, Ciner Group diversified its operations from the energy and mining sectors to tourism, media and broadcasting sectors.  Ciner Group is a pioneering actor in energy and mining sector given its new and initial steps since early 1990s. In line with accelerated privatization efforts in 1990s, the Group successfully involved in mining and energy sectors which are the underlying sectors of the Group’s fast growth.

5 Park ElektrikJune 20115 Ciner Group, Main Line of Businesses Energy & Mining Group Ciner Group Media Group Commerce, Industry & Services Group Major Companies Park Elektrik Park Termik Park Teknik Eti Soda Silopi Elektrik Park Enerji Ekipmanları Major Companies & Brands Ciner Yayın Holding Haberturk Newspaper Haberturk TV, Radio, Haberturk Web Site Bloomberg HT, FHM, Marie Claire, Newsweek Major Companies Park Construction Park Marine Park Aviation Lares Park Hotels Park Insurance Park Foreign Trade Denmar Logistics

6 Park ElektrikJune 20116 II.Park Elektrik Overview

7 Park ElektrikJune 20117 The Company  Established in 1994.  Initially offered to public in 1997.  Changed its commercial title in 2000.  Commenced copper operations in late 2006.  Gathered electricity production license in 2008 for establishment of a hydro electricity power plant.  Merged with ISE-listed Group company, Ceytas, in May 2009.  Currently operating a copper and an asphaltite mine and plans to establish an HPP in the medium term, and a NGPP in the long term.

8 Park ElektrikJune 20118 Ownership Structure

9 Park ElektrikJune 20119 Participations, Park Termik  Park Elektrik has 10% stake in Park Termik Elektrik San. ve Tic. A.S., a Ciner Group company which is involved in thermal power generation in Çayırhan, Ankara.  Park Termik operates Cayirhan Thermal Power Plant which has a total production capacity of 630 MW, in four units.  The plant is an integrated power generator which procures coal through its own lignite mines.

10 Park ElektrikJune 201110 III.Operations

11 Park ElektrikJune 201111 Park Elektrik’s Existing & Planned Facilities Asphaltite Mine Sırnak Natural Gas Power Plant Adana Copper Mine Siirt HPP Diyarbakır

12 Park ElektrikJune 201112 I) Madenköy Copper Zone  Park Elektrik acquired operation license of Madenköy copper mine from Eti Holding, a state-owned company, for YTL9.4 mn in January 2000.  Initial reserves in Madenköy copper zone is determined as 13,6 mn tons of ore which currently has a copper grade of 1,8-2,0%.  The company produces and sells concentrated copper that includes 18-20% copper content.  Although the mine has been active since 2006, the initial reserves are preserved due to consecutive exploration work.

13 Park ElektrikJune 201113 Zone Plan

14 Park ElektrikJune 201114 Drilling

15 Park ElektrikJune 201115 II) Silopi Asphaltite Zone  Park Elektrik has the operational rights of Silopi asphaltite mine until the end of 2033. Asphaltite is a petroleum-origin hydrocarbon with higher thermal value. Calorie of asphaltite varies between 5,500 and 5,800 kcal/kg.  According to Turkish Coal Enterprise (TKI) reports, estimated asphaltite reserve in Silopi is around 35 mn tons.  Operations in the asphaltite zone started in June 2009. The company provides asphaltite to Silopi Elektrik Üretim A.Ş., a group company which is involved in electricity production in Silopi with fluidized bed technology and has a starting capacity of 135 MW.  Annual production amount in Silopi is around 450,000 currently and is subject to increase from 2014 onwards in line with capacity expansion of Silopi EUAS. Park Elektrik has a profit margin of 15% on its asphaltite sales based on recently renewed contract by two companies.  The mine will be open-pit for the first years of operation. Later on, underground mining will be done by the method of “Cut and Fill Block Caving”.

16 Park ElektrikJune 201116 Open-Pit Mining in Silopi

17 Park ElektrikJune 201117 Asphaltite Preparation Facility PREPERATION FACILITY

18 Park ElektrikJune 201118 IV.Planned Investments

19 Park ElektrikJune 201119 Diyarbakır HPP  Installed capacity will be 50.5 MW.  Production license is valid for 49 years.  Estimated investment amount is US$ 60 mn.  Estimated start-up for the investments is mid 2011.  The plant is estimated to be operational by the end of 2013.

20 Park ElektrikJune 201120 Ceyhan Natural Gas Power Plant  Park Elektrik applied to Energy Market Regulatory Authority for a license to establish a NGPP in Ceyhan, Adana.  Installed capacity will be 423 MW.  Production license will be valid for 49 years.  Estimated investment amount is Euro 250 mn.

21 Park ElektrikJune 201121 V.Financial Structure

22 Park ElektrikJune 201122 Quarterly Concentrated Copper Sales (dmt)

23 Park ElektrikJune 201123 Annual Concentrated Copper Sales (dmt)

24 Park ElektrikJune 201124 Total Sales Revenues* (TL) * Ignores other sales & discounts.

25 Park ElektrikJune 201125 Breakdown of COGS, YE10

26 Park ElektrikJune 201126 Unit Cash Costs For Con. Copper (TL/dmt)

27 Park ElektrikJune 201127 Net Earnings (TL mn)

28 Park ElektrikJune 201128 Margins

29 Park ElektrikJune 201129 Sources of Financing (TL mn)

30 Park ElektrikJune 201130 Working Capital (TL)

31 Park ElektrikJune 201131 VI.Evaluation of 1Q 2011 Financial Results

32 Park ElektrikJune 201132 Evaluation of 1Q 2011 Financial Results  Concentrated copper sales increased by 51% in the 1Q compared to the previous year, while asphaltite sales went slightly up.  Revenues from the copper sales almost doubled under the effect of increased production and soared copper prices, while revenues from the asphaltite sales were kept same as the previous year, due to the fixed contract price.  Benefiting from higher copper prices, the company’s operating margins also increased significantly.

33 Park ElektrikJune 201133 Production & Sales Amount

34 Park ElektrikJune 201134 Sales Breakdown (TL) & Gross Margin by Products 1Q101Q11% Concentrated Copper Sales19,967,20838,986,23295 Gross Margin of Copper54%73%nm Asphaltite Sales4,248,6644,784,83213 Gross Margin of Asphaltite34%17%nm Other Sales54,767106,76195 Total Sales Revenues24,270,63943,877,82581 Overall Gross Margin50%67%nm

35 Park ElektrikJune 201135 Income Statement (TL)

36 Park ElektrikJune 201136 Margins (%)1Q101Q11 Gross Profit Margin5067 Operational Profit Margin2963 EBITDA Margin4273 Net Profit Margin2354

37 Park ElektrikJune 201137 Summary Balance Sheets (TL) YE101Q11 % Current Assets278,577,962294,936,1116 Fixed Assets96,996,52698,944,9242 TOTAL ASSETS375,574,488393,881,0355 Short Term Liabilities28,757,83122,877,718-20 Long Term Liabilities4,255,8164,662,45210 Shareholders Equity342,560,841366,340,8657 TOTAL LIABILITIES375,574,488393,881,0355

38 Park ElektrikJune 201138 VII.Future Prospects

39 Park ElektrikJune 201139 Future Prospects  In the very near future, Park Elektrik is going to start construction of its HPP. The company will call for a tender for the construction of the HPP in the coming months. It is estimated that HPP will become operational by the end of 2013.  The company continues its exploratory drilling in this copper rich area, targeting to increase its proven copper reserves above its initial level of 13.6 mn tons up until the probable reserves of 23 mn tons level. These studies are estimated to increase Park Elektrik’s life period considerably. The company also aims to increase its tenor rate through these drillings.  Capacity expansion investments to triple the power generation capacity of Silopi Elektrik has already started and planned to be accomplished by 2014. Park Elektrik’s asphaltite sales will be also tripled after 2014, which means our production volume will increase to 1.2-1.3 mn tons of asphaltite annually.

40 Park ElektrikJune 201140 Corporate Governance Rating  Park Elektrik was rated with 8.65 as a result of the Corporate Governance study done by SAHA Kurumsal Rating Agency. According to report done by SAHA, the rating means that the company performs “very good” in terms of Capital Markets Board’s corporate governance principles. It has, to varying degrees, identified and actively managed all significant corporate governance risks through comprehensive internal controls and management systems. The company’s performance is considered to represent best practice, and it had no deficiencies in any of the areas rated.

41 Park ElektrikJune 201141 T H A N K Y O U. CONTACT Yesim BilginturanSelim ErdoganIR Manager Phone: +90 216 531 25 33+90 216 531 25 35 y.bilginturan@cinergroup.com.trs.erdogan@cinergroup.com.tr www.parkelektrik.com.trwww.parkelektrik.com.tr www.cinergroup.com.trwww.cinergroup.com.tr


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