Etrion Corp. · OTC:ETRXF

Etrion — Investor Presentation (February 2011)

22 slides from Etrion's investor presentation, February 2011

  1. Slide 1: Corporate Presentation

    Corporate Presentation February 2011 1

  2. Slide 2: Disclaimer

    Disclaimer These materials are strictly confidential and may not be copied, published, distributed or transmitted These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part,

  3. Slide 3: Lundin Group of Companies

    Introduction Lundin Group of Companies 3

  4. Slide 4: Etrion in brief

    Introduction Etrion in brief  Etrion is a solar power producer that develops, builds, owns Assets overview and operates solar power plants  47 MW solar power plants operational  Currently focused on countries with government incentives for  10 MW under construction ITALY solar power production,

  5. Slide 5: Market Overview

    Market Overview 5

  6. Slide 6: Solar energy market value chain

    Market overview Solar energy market value chain Parts IPP Raw material Services (modules, Development Finance (build, own, ( l ) (poly) (EPC EEng)) (EPC, inverters) operate) EPC = engineering, procurement and construction  Raw material (e.g.,  Solar cells are then  Third parties provide different

  7. Slide 7: Listed renewable power generation companies

    Market overview Listed renewable power generation companies Company Description Technology Installed capacity Market cap Develops, De elops builds, b ilds oowns ns and operates solar popowerer plants. plants Current C rrent foc focuss is on countries co ntries like Ital Italy with government incenti

  8. Slide 8: Company Description

    Company Description 8

  9. Slide 9: Utility scale solar power generation

    Company description Utility scale solar power generation Goal: Build, own and operate solar electricity plants at lowest kilowatt per hour (kW/h) cost Projects shown are not all Etrion projects but were built by Etrion management and demonstrate the simplicity of ground‐based solar technology. 9

  10. Slide 10: Etrion's management team

    Company description Etrion’ss management team Etrion MARCO A. NORTHLAND GARRETT SODEN MICHAEL SOMMER FERNANDO ALVAREZ Chief Executive Officer Chief Financial Officer Vice President Vice President and Director Business Development Engineering and Construction  Founder of European operations for  CF

  11. Slide 11: Business model – key drivers

    Company description Business model – key drivers Key drivers Rationale STABLE REVENUES 1. Feed‐in‐Tariffs  Premium price for solar electricity generation under long‐term contract REEVENUE 2. Solar irradiation  Annual solar irradiation varies less than 10%  Economic growth will increase power dema

  12. Slide 12: Free cash flow to equity creation

    Company description Free cash flow to equity creation Illustrative example 100% 15% 33% 17% 10% 25% Revenues Operating cost Interest payment Debt repayment State and local Free Cash Flow taxes to Equity Key features: Key features: Key features: Key features: Key features: Key features:  Long‐term c

  13. Slide 13: Business rationale for the Italian solar market

    Company description Business rationale for the Italian solar market Italy overview P Population l ti 58 1 million 58.1 illi Annual inflation rate (Jan 2011) 2.1% Avg irradiation (kWh/m2/year) 1,650 (1,400‐2,000) Residential electricity rate (EUR/kWh) 0.22 Estimated year for grid parity 2015 Electric

  14. Slide 14: Development process

    Company description Development process P10 P50 P90 Si d Site development l Fi Financing i C Construction i O Operations i 12 – 24 months 4 – 6 months 3 – 6 months 20 – 35 years  Site Survey  Contractor C S l i Selection  Financial Fi i l Closing Cl i  Asset A M Management  Lease Agreement  Ba

  15. Slide 15: Current projects in Italy: 57 MW fully-funded

    Company description Current projects in Italy: 57 MW fully fully‐funded funded (Currency: EUR million) Project MW Revenue EBITDA I ALY ITALY Cassiopea (Montalto, Lazio) 23.9 17.4 16.3 Viterbo Centauro (Montalto, Lazio) 8.8 6.1 5.7 Frosinone Helios ITA (Mesagne, Puglia) 6.4 4.8 4.4 Montalto, 33MW Cam

  16. Slide 16: Solar assets in Italy

    Company description Solar assets in Italy Operational Operational Lazio, Italy – Montalto 33 MW, one of the largest solar parks in operation in Italy Puglia, Italy – Helios ITA 6.4 MW  23.9 MW connected in Q4‐2009  5.9 MW connected in Q4‐2009  8.8 MW connected in Q3‐2010  0.5 MW connected in Q4‐

  17. Slide 17: Solar assets in Italy

    Company description Solar assets in Italy Operational Operational Puglia, Italy – SVE 3 MW Lazio, Italy – Borgo Piave 3.5 MW / Rio Martino 1.7 MW  3 MW completed in Q4‐2010  3.5 MW completed in Q4‐2010  SunPower S P single i l axis i ttracker k ttechnology h l  1.7 1 7 MW completed l t d iin Q4

  18. Slide 18: Project pipeline in Italy: development status

    Company description Project pipeline in Italy: development status No. of Funding Description MW Existing projects and potential capacity projects required 180  Final Permit (AU) is obtained, project is ready 160 for construction, final grid 3 P90 Q1 9 connection project (Lazio) 140 (progetto esecut

  19. Slide 19: Summary

    Summary 19

  20. Slide 20: Conclusion

    Conclusion Attractive returns in downstream solar power generation sector  Attractive Operating Environment – Italy  Second largest solar market  Multi‐year Feed‐in‐Tariff visibility  Expected to be among first markets to reach grid parity  Unique Capital Structure  Non‐recourse project financ

  21. Slide 21: Lundin Group of Companies

    Lundin Group p of Companies p 21

  22. Slide 22: Contacts

    C t t Contacts Etrion Corporation Marco Northland, CEO Garrett Soden, CFO Rue du Stand 60‐62 CH ‐ 1204 Geneva Switzerland Phone: +41 22 715 20 90 Email: [email protected] Web: www.etrion.com www etrion com 22

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