AK A E K N E ER E Jİ EL E EK E T K RİK K Ü RET E İM A.Ş.. Ş

Transcription

1 AKENERJİ ELEKTRİK ÜRETİM A.Ş

2 COMPANY OVERVIEW Private Energy Company 373MW active power capacity (Natural gasand wind) 373 MW currently under construction (Hydro) 900 MW at development stage (Natural gas) 160 MW at development stage (Hydro with dam) RoleinMarket One of the largest(capacity) and most experienced player in the market. Single-handedly produces 1% of energy generated in Turkey and is one of the market leaders with its production of private generation companies. IPO-ed in June Ranking in the Major 500 Ranked within the first 100 at 500 Major Industrial Enterprises of Turkey Research by Istanbul Chamber of Industry in last 7 years Ownership Structure Akkök 37,5% CEZ 37,5% Public Shares 25,0% 2

3 SHAREHOLDER OVERVIEW AKKÖK Companies Quoted at the Istanbul Stock Exchange CEZ GROUP AKSA AKENERJİ AK-AL AKMERKEZ World s largest acrylic fiber producer. Market leader of private power generation companies in Turkey. A leader in manufacture of textiles (Fabric & Yarn) with years of experience. REAL ESTATE INVESTMENT COMPANY : WORLD BRAND AS A SHOPPING CENTER CEZ is the largest Czech corporation, and the largest corporation among 10 new EU member states. 63% of the company is owned by Czech Ministry of Finance. The best performing European utility stock with growth of 253% over last 36 months. Vertically integrated in the Czech Republic from mining through generation to distribution and supply. Expertise in distribution and supply in Bulgaria and Romania. Generation know-how in lignite, coal and nuclear energy. 3

4 POWER SECTOR OUTLOOK - GLOBAL TRENDS Favoring Renewable Investments Requirements of Increased Demand World s Electricity Production by Fuel(Trillion kwh) Coal Natural Gas Renewables Nuclear Liquids Today, with the growth of the economies, demand for energy is increasing. As a result, further investments and diversification of the energy sources seems immanent. It s expected that, power and utilities organizations will need to double their base load generation from (both traditional and renewable sources) to address the growing energy demands of our global economy over the next 30 years. They also will need to invest in new technologies for carbon capture, smart metering and demand side management, even absent the development of global standarts. The electric power industry will need to work with state and national regulatory authorities to reconfigure transmission and distribution systems to successfully integrate new sources of energy. Source: IEA Renewable Energy Capacity as a proportion of Global Power Generation Capacity, (GW) In developed countries, wind and solar power investments seem to dominate the renewable energy developments. This may also be the likely result of the developed countries having maximized their hydro capacity already. 4 Source: EIA

5 POWER SECTOR OUTLOOK- TURKEY 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Turkey's Installed Capacity by Generation Companies (MW) BO-BOT-TOR and others Private Generation Co. %22 Public Generation Co. %24 Import and Export of electricity is depends on Governmental permits. Due to technical infrastructure, capacity for trade is very limited. %54 Power Consumption Breakdown in Turkey (2008) Other 10% Residential 24% FuelSources (2009) Coal 8% Hydro 18% FuelOil 3% Lignite 20% Other 2% Natural Gas 49% Industrial 46% Government Office 5% Commercial Customers 15% Currently the majority (90%) of natural gas is being imported by the government, there is no alternative and no price competition for natural gas in the market. The above chart illustrates, that the electricity price is mainly sensitive to the global NG price trend. 5 Source: TEİAŞ, TEDAŞ

6 ELECTRICITY GROWTHDYNAMICS -GLOBAL It has been historically observed globally that the electricity markettendstogrow+4%onaverageabovethecountrygrowth rate. The difference in electricity demand and growth rates tends to be higher in developing countries, like Turkey. Since the end of 2007, Turkey experiences a shortage in electricity supply. We expect this shortage situation to continue in the short-run, at least until the current investments become operative. This indicates a growth potential for the Turkish energy market, as well as a satisfactory return on investments, while the imbalance lasts. Source: EUROSTAT 6

7 ELECTRICITY GROWTH TREND - TURKEY Generation Capacity vs. Demand Forecasts (GWh) 15% High Demand Scenario Renewable Hydro Thermal LowDemand Scenario Electricity Consumption Trend % % % % Annual GDP Increase (%) Annual Electricity Consumption Increase (%) % TEIAS forecasts average annual consumption growth of 7 % per year for 2009 to The consumption growth may be shifted due to the global crises but the imbalance remains a problem. In the last 20 years, net electricity consumption increased remarkably with 7% CAGR. Accordingly, we expect the government to improve the investment environment to encourage the private sector. Electricity consumption proved to be resilient to the downturns in the economy. Increase in electricity demand has mostly been much higher than the increase in national income in growth years, while staying at the positive territory during recession years. This has also been the case in financial crises situations. In 2001, Turkey s GDP percentage growth rate change has been - 5,7%, whereas the electricity demand growth rate has been-1,2%. 7 Source: TEİAŞ, State Planning Organization,TUİK

8 2009 DEMAND TREND-EFFECT OF THE CRISIS Monthly Electricity Consumptions of Turkey (GWh) 19,0 18,5 18,0 17,5 17,0 16,5 16,0 15,5 15,0 14,5 14, Jan.08 Feb.08 Mar-08 Apr.08 May-08 Jun.08 Jul.08 Aug.08 Sep.08 Oct.08 Nov.08 Dec.08 Jan.09 Feb.09 Mar-09 Apr.09 May-09 Jun.09 Jul.09 Aug.09 Quarterly Electricity Consumptions of Turkey (GWh) ,7 50,7 50,1 50,7 49,0 48,5 47,8 46,0 46,1 Sep.09 Oct.09 Nov.09 Dec.09 Jan.10 Feb.10 Mar.10 Apr.10 GWh Diff Diff Jan 17,9 16,8-6,2% 17,4 3,1% Feb 16,5 15,0-9,2% 15,8 5,2% Mar 16,2 16,0-1,8% 17,0 6,7% Apr 15,7 14,8-5,2% 16,3 9,7% May 16,3 15,3-6,2% Jun 16,5 15,9-3,8% Jul 18,3 17,7-3,3% Aug 18,4 17,6-4,1% Sep 16,0 15,3-4,5% Oct 14,9 15,9 6,8% Nov 15,4 15,6 1,1% Dec 15,9 17,6 11,0% Total 198,0 193,5-2,3% 66,4 6,1% Although electricity demand has decreased by 2,3% in 2009, we are monitoring a recovery in the demand starting from 4Q Q 2Q 3Q 4Q 8 Source: TEİAŞ

9 MARKET LIBERALIZATION SCHEDULE Turkish Energy Market deregulation is developed after the UK Model and has been proceeding as per below schedule. Privatization & Liberalization should be expected to start to help create a transparent & competitive market environment. NG Market Libera alization Tender for BOTAS contracts 1* The privatization tenders for NG will continue until the market share of BOTAŞ will be reduced to 20%. Power Ma arket Liberaliza ation >7.7 miokwh/yr >6.0 miokwh/yr Eligibility Limit >3.0 miokwh/yr >1.2 miokwh/yr >0.48 miokwh/yr >0.1 miokwh/yr Further Reduction of Eligible Customer Limits and Fully Open Market Introduction of automatic ization Privati Distribution Generation pricing mechanism for NG and electricity Distribution Region Sales Introduction of DUY mechanism 2* Plants brought to market in stages Generation Asset Sales ~ MW * 4 billion m3 NG has been privatized at * 21 Distribution Regions Jun.08: Sedas, Bedas Sep.08 : Meram, Aras Oct.09 : Çoruh, Osmangazi, Yeşilırmak Feb.10 : Uludag, Camlıbel, Firat, Van Golu Jul.10 : Bogazici, Dicle, Gediz, Trakya 9

10 UPCOMING DISCO PRIVATIZATIONS Auctioned/Privatized DisCos Upcoming DisCo privatizations The Government divided Turkey into 21 distribution regions. Each region will be privatized seperately. So far, 9 distribution regions have been tendered before But, 4 of them haven t closed yet. 4 distribution regions auctioned in Feb.2010(Uludag, Camlıbel, Firat and Van Golu). 4 distribution regions will be auctioned in July.2010(Bogazici, Dicle, Gediz and Trakya). 4 distribution regions privatization will take place in 2010 and following years. 10

11 UPCOMING GENCO PRIVATIZATIONS %37 of Turkey s capacity will be offered to the private sector. TheGovernmentisplanningtoprivatize97ofitspowerplantswithatotalcapacityof16.358MWstartingfrom Thermal, 28 Hydro power plants and 52 small sized hydros will be privatized. Capacity range(excluding small hydros): Min: 26MW Max: MW 11

12 TRY/MWh 240 MARKET MECHANISM & TARIFF STRUCTURE Industrial Tariff DUY Day DUY Peak DUY Night The official electricity tariff (for residential/commercial/industrial use)issetbythegovernmentevery3monthsasperapm*. NG tariffs are determined by the government, and adjusted monthly by APM(the private gas suppliers operate by providing a discount rate off of the official tariff). The amount of imbalance in the market drives the price higher since the last-resort producers are predominantly NG/ fuel-oil plants increasing electricity shortage forecasts indicate higher prices to come. In Dec.2009, DUY** system switched to hourly pricing mechanism. Since system is still in transition process, 2010 outlook remains to be seen. 08/ / / / / / / / / / / / / / / / / / / / / / /2010 Private sector generation companies have the following sales platforms: Contract the customer directly providing them a discount rate from the official tariff, Selling to DUY system by quoting generation price/power plant and per the specific time-segment of the day (price, that the company itself announces per its own power plants). *APM : Automatic Pricing Mechanism initiated in July.2008, where electricity and natural gas tariffs are automatically calculated and periodically applied according to the changes in price of fuel sources, FX rates, inflation rates etc. **DUY : Clearing house system was initiated in Aug.2006, and provides an open-market platform for the power generation companies, since the price is set by the generation company according to the supply and demand dynamics, and is not limited by the official tariff. Sales to the DUY(Electricity Market Balancing and Settlement Regulation) system are exempt from TRT fund and transmission cost. 12

13 AKENERJİ 13

14 OPERATIONS and INVESTMENTS Current Active Capacity: 373MW (Natural gas& Wind) 417 tons/h Ongoing Investments: 373 MW (Hydro) Development Stage: 900 MW (Natural gas) Development Stage*: 160MW (Hydro with dam) License Pending: 170 MW (Wind) Current Power Plants Electricity Capacity [MW] Steam Capacity [tons/hr] Çerkezköy Bozüyük Kemalpaşa 127,6 132 Ayyıldız WPP 15 - TOTAL 372,6 417 Capacity to be operational in 2010 Electricity Capacity [MW] Uluabat HPP 100 Akocak HPP 81 Burç HPP 28 Bulam HPP 7 TOTAL 216 Geothermal License: 5 Permits * We have recently disclosed to CMB that we are in a position to acquire a company which has a 160 MW dammed hydro project; acquisition procedures are being finalized. 14

15 AKENERJİ MILESTONES 2009 Strategic Partnership with CEZ Vertical Integration with Sedaş Acquisition of Egemer Company In September 2008, Akenerji has signed a strategic partnership agreement with CEZ to sell 37,5 % of its shares for302miousd.thefinancialclosinghastakenplaceinmay2009. CEZ know-how in distribution, coal, lignite and nuclear power plants is an important asset for Akenerji s growth. Akenerji has announced its plan to invest USD 3billion in Turkish energy sector to reach an installed capacityof3.000mwwithin 5years. In July 2008; Akkök- Akenerji CEZ, AkCEZ, won the Sakarya Electricity Distribution (SEDAŞ) tender by submittingthehighestbidofusd600mio. Akenerji has taken over SEDAŞ in Feb Akenerji has opted for the Deferred Payment Option of the Privatization Authority and has paid 300 mio USD in cash. 1.installment of 150 mio USD+interest has been paid in Jan.2010, financed through a short term bridge loan. The outstanding balance is due in Feb Akenerji uses the equity pick-up method to consolidate SEDAŞ to its Balance sheet. Akenerji acquired Egemer Company which is in possesion of 900 MW NG Power Plant Licence in March This is the biggest to-date generation investment of Akenerji. This investment is a big step toward Akenerji s MW capacity target. Project is currently under development. Investment to start in 3Q2010, plant to be operational in

16 DISCO ACQUISITION COMPARISON customers.* More than 50% of the consumption is industrial.* App. 900 million $ annual revenue.* Sedaştheft/lostratiobelow7%;oneofthelowestinTurkey.* Distributed billion kwh/year.* Distribution margin is fixed at 2,23% during transaction period until 2012E. AkCEZ has SEDAŞ s transfer of operating rights for 30-years. Akenerji uses the equity pick-up method to consolidate SEDAŞ to its Balance sheet. Acquisition Prices ($/kwh) 0,14 0,12 0,110 0,109 0,10 0,100 0,096 0,08 0,075 0,078 0,068 0,06 0,04 0,02 0,00 * :Basedon2008figures 0,124 0,107 0,088 0,086 In 2009, demand has decreased by 4% in Sedaş due to economic crises where Turkey s GDP growh rate has posted 4,7% shrinkage. Akenerji s 2010 GDP growth rate expectation is in line with IMF at 3,7% for Turkey. Considering that electricity demand is generally 3-4% higher than GDP growth rate in the country, we assume that electricity demand in Turkey will increase 6-7% in 2010 comparing with DisCo Electricity Distributed (GWh) * Acquisition Price (mio $) $/kwh Başkent ,110 Sedaş ,068 Meram ,075 Aras ,078 Çoruh ,100 Osmangazi ,096 Yeşilırmak ,109 Çamlıbel ,124 Fırat ,107 Vangölü ,088 Uludağ ,086 * TEDAS

17 AKENERJI INVESTMENT HORIZON The current leader in the market, Akenerji plans to grow through a diversified portfolio. The breakdown of Akenerji s currently licensed investment are given below: Project Name INVESTMENT BREAKDOWN Developed Under Capacity [MW] Expected Operational Date Uluabat HPP 100 Aug-10 Akenerji Akocak HPP 81 Aug-10 Feke I HPP 30 2Q 2011 Feke II HPP Akkur* 70 1Q 2011 Burç HPP 28 2Q 2010 Himmetli HPP 27 3Q 2011 Gökkaya HPP MEM* 30 3Q 2011 Bulam HPP 7 3Q 2010 Hatay NG PP Egemer* TOTAL Financing for all Akenerji and Akkur projects has been arranged before and in Akenerji borrows in 7+ year terms and in globally competitive standards. In 2007, Akenerji applied to EMRA for 2 wind power plant projects with a total capacity of 170 MWs. Akenerji is following the procedure to closure. In 2008; Akenerji obtained 5 permits to search for geothermal energy capacities in İzmir and Bursa regions. Akenerji has taken over Egemer Enerji Üretim A.Ş., an SPV in possession of a 900 MW NG PP license in Hatay, Turkey, in March The investment is currently in development phase. * : SPV (Special Purpose Vehicle Entity) HPP : Hydro Power Plant WPP : Wind Power Plant NG PP: Natural gas fired Power Plant Akenerji has recently disclosed to CMB that it is in a position to acquire a company which has a 160 MW dammed hydro project; acquisition procedures are being finalized. 17

18 MAIN CAPEX ASSUMPTIONS Capacity Source Diversification by 2013* For CAPEX estimations, the following data can be used: 1,2-1,5 mio $/MW for HPPs, 0,75-1mio$/MWforNGPPs, and 1,5-2 mio $/MW for wind projects. 23% 1% For investment period estimations, the following data can be used: 2yearsforWPPs, 2-3yearsforNGPPs, and3yearsforhpps. Akenerji applies 30% equity-70% debt structure to its investments. 76% NG Hydro Wind All of Akenerji s renewable projects are eligible to benefit from the Renewable Energy Law- i.e. a purchasing guarantee for 10 years at a price to be determined byemraonayearlybasis. Akenerji has applied for VER (voluntary emission trading) certificates for ALL of its renewable portfolio. Akenerji aims to optimize its generation type and fuel cost through its portfolio to enhance its flexibility and competitiveness in the market. * Capacity breakdown is based on the licensed investment assumption given in the previous slides. 18

19 CAPACITY & SALES FORECAST* * These forecasts are based on the licensed investment assumption given in the previous slides. With the completion of current licenced projects, Akenerji s power generation capacity will increase with a CAGR of 36% by2013 Average capacity utilisation rate can be considered as % for hydro, 30-35% for wind power plants. In base load conditions 70-80% capacity utilisation rate can be used for NG fired power plants. Power Generation Capacity (MW) Ayyıldız WPP (15MW) has become operative in Sep Yalova NG PP (70MW) has sold to Aksa (Akkök Group Company) in Apr (69MW) capacity installed in various locations of Turkey have sold within Starting from the 2nd half of 2010 until the end of 2011, eight Hydro PP will commence operations with a total capacity of 373MW -900MW Egemer NG power plant project will become online in E E E E 19

20 DIRECT-INDIRECT SALES SALES & PRICING ASSUMPTIONS Akenerji has 3 main types of customers: direct, and indirect customers, and DUY system. Direct customers have a physical direct line to the power plant, whereas the indirect customers are supplied through the national grid(at additional cost). Tariff for sales to direct and indirect customers are set as a function of the government s tariff. Akenerji applies a discount rate for direct customers and indirect customers. Akenerji is the sole supplier of steam for its customers, and hence can directly reflect the NG price changes in its steam price. DUY SALES Akenerji s average DUY price has been approximately 8-30% abovethetariff. In 2009, due to theeffectsofthe global crises, margins diminished to approximately 7% from their ratein2008,asweexpected. In Dec.2009, DUY system switched to hourly pricing mechanism. Since system is still in transition process, 2010 outlook remains to be seen. We expect electricity demand to increase in line with the easing of the financial crises. Both this, and the increased capacity of renewable projects in turkey(due to rainy winter) will effect the margins in Sales Breakdown Indirect, 10% 2010 Sales Forecast Indirect, 30% Direct, 12% DUY, 60% DUY, 78% Direct, 10% 20

21 FIVE YEAR INVESTMENT HORIZON Overall Goal: Akenerji plans to reach 3000 MWs of installed capacity in 5 years. Akenerji priorities in diversifying its fuel mix according to the growing demand while growing in generation. Main Focus Areas : Additional Renewable Capacity Additional Thermic Capacity Nuclear Energy Generation Privatization Opportunities Distribution Privatization Opportunities Akenerji has existing wind licence applications, and geothermal searching licenses. Akenerji will continue to examine opportunities in wind, hydro, solar and geothermal facilities in Turkey. Akenerji is examining both local and import coal investment opportunities in various regions in Turkey. Akenerji has been actively involved in the nuclear energy talks with the governmental authorities and is interested in taking part in such an investment if the tender conditions are at global standards. Akenerji closely follows the generation asset privatization (tenders for current EUAŞ portfolios). The privatization is expected to take place in After the take-over of Sedas region, Akenerji will keep following upcoming distribution region privatization. Priority will be given to areas of Akenerji s generation areas. 21

22 FINANCIAL INFORMATION 22

23 FINANCIAL PERFORMANCE Net Sales (mio USD) ** Ebitda (mio USD) ** * 2007** Q * 2007** Q Net Income (mio USD) * 2007** Q (*) : TRT fund has been left out of the above calculations to better reveal performance. (**) : The impairment losses, a one-off provision the potential value difference resulting from power plant sales, has been left out from the calculations to better reveal operational performance. (**) : Excluding SEDAŞ. 23

24 PROFITABILITY PERFORMANCE Yearly Profitability Margins % * 2004* * 2007* Q2010 EBITDA Margin 11% 9% 17% 18% 13% -5% 0% 9% 14% 13% 9% Net Margin 32% 57% 15% 2% -5% -20% -7% 1% 15% 5% -4% Quarterly Profitability Margins % 3Q2007* 4Q2007* 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 EBITDA Margin 11% 11% 23% 21% 17% -2% 15% 15% 12% 8% 9% Net Margin 1% 4% 22% 11% 12% 13% 5% 6% 17% -7% -4% In 2008 and 2009, Akenerji incurred 14% and 13% Ebitda Margin respectively with its natural gas fired power plants. We expect that the initiation of new hourly basis DUY market will have an affect on the margins, however the amount and direction of this effect remains to be seen as the system develops. Accordingly, we expect that 2010 Ebitda margin will hover at least around 15%. *: In CMB s new inflation adjusted accounting terms. * : TRT fund has been left out of the above calculations to better reveal performance. * :Impairment losses (Provision the potential value difference resulting from power plant sales)have been left out of the above calculations to better reveal operational performance. 24

25 CONSOLIDATED BALANCE SHEET Size of Balance Sheet (mio USD) Debt Structure (mio USD) Q Cash Short-term Financial Debts 800 Long-term Financial Debts Net Debt (0) (58) (128) (344) (361) Q2010 More about the rights issue... Key Ratios Q2010 Current Ratio 3,2 3,5 2,1 0,9 0,8 Leverage 0,5 0,5 0,8 1,1 1,3 Total Liabilities/Total Assets 0,3 0,3 0,4 0,5 0,6 ROE (%) -14% -10% 19% 3% -2% Leverage = Total Liabilities / Shareholders's Equity ROE = Net Income / Shareholders's Equity Shareholders Ownership Previous Paid-in Capital (mio TRY) Subscription (mio TRY) Actual Paid-in Capital (mio TRY) Akkök 37,5% 24,4 116,0 140,4 Subscription is paid in advance at the end of CEZ 37,5% 24,4 116,0 140,4 Subscription is paid in advance at the end of Public 25% 16,5 78,5 95,0 Pre emption rights were exercised between April 13-27, 2010 and 99% of the public subscription was paid. TOTAL 100,0% 65,3 310,5 375,8 Upon increasing Akenerji s registered capital upper limit from 150 million TRY to 1,5 billion TRY at the end of 2009, Akenerji has nearly completed the process of increasing its paid-in capital to TRY 375,8 mio from TRY 65,3 in accordance with the legislation on April 13,2010. The unsubscribed shares will be offered to public in the first half of May. Capital increase process is expected to be completed and new shares willbelistedoniseinmay2010. Proceeds from the rights issue will be used for Egemer project and new upcoming projects. 25

26 STOCK PERFORMANCE Market Cap USD 1billion 180% 160% 140% 120% Because of increasingnatural gas prices and not adjusted electricity prices, stock price has also decline. With the initiationof DUY system, stock price has increased. -CEZ has taken over %37,36 of the shares of Akenerji in May.09 -Akenerji has acquired Egemer in Mar.09 - Acquisition of SEDAŞ in Feb % 80% 60% 40% Introduction of DUY 20% Electricity Prices/Natural Gas Prices 0% Sep-09 Jan-02 Mar-02 May-02 Jul-02 Sep-02 Nov-02 Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Nov-09 Jan-10 Mar-10 Stock Performance 26

27 MW GW NG GDP CAGR DUY DISCO EUAS APM TRT HPP WPP NG PP USD mio $ PP SPV VER EMRA : Megawatt : Gigawatt : Natural Gas : Gross Domestic Product ABBREVIATIONS : Compound Annual Growth Rate : Electricity Market Balancing and Settlement Regulation System : Distribution Companies : Electricity Generation Co.Inc. : Automatic Pricing Mechanism : Turkish Radio -Television Corporation : Hydroelectric Power Plant : Wind Power Plant : Natural Gas Fired Power Plant : US Dollars : Million Dollars : Power Plant : Special Purpose Vehicle Entity : Voluntary Emmission Trading : Electricity Market Regulatory Authority EBITDA : Earnings Before Interest, Tax, Depreciation & Amortisation CMB TRY ROE : Capital Markets Board of Turkey : Turkish Lira : Return on Equity : Net Income / Shareholders's Equity 27

28 AKENERJI INVESTOR RELATIONS Akenerji Elektrik Üretim A.Ş. Miralay Şefik Bey Sok. No:15 Akhan Gümüşsuyu İstanbul Turkey Gamze DİNÇKÖK YÜCAOĞLU Nilüfer AYDOĞAN (ext:1130) This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management s current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Akenerji nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation. 28