Etrion Corp. · OTC:ETRXF
Etrion — Investor Presentation (January 2017)
37 slides from Etrion's investor presentation, January 2017
Slide 1: Corporate Presentation January 2017
CORPORATE PRESENTATION JANUARY 2017 1
Slide 2: Disclaimer
DISCLAIMER These materials and the information contained herein are being presented by Etrion Corporation (the “Company”). 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 sh
Slide 3: Corporate Overview
CORPORATE OVERVIEW 3
Slide 4: Etrion - The Renewable Platform of the Lundin Group
ETRION-THE RENEWABLE PLATFORM OF THE LUNDIN GROUP MINING OIL & GAS/ENERGY SECTOR SECTOR THE LUNDIN GROUP WORLDWIDE OPERATIONS 4
Slide 5: Etrion Corporation
ETRION CORPORATION COMPANY OVERVIEW FINANCIAL SUMMARY FINANCIAL SUMMARY Independent power producer (IPP) that develops, Recent Share Price (TSX/OMX: ETX) C$0.29 / SEK 2.07 builds, owns and operates ground-based solar photovoltaic (PV) power generation plants with a Shares Outstanding 334.1MM stron
Slide 6: Delivering Solid Operational Results
DELIVERING SOLID OPERATIONAL RESULTS Produced 208 GWh of clean energy in first 9 months of 2016 Revenues in Q3-16 reached USD 17.2 million, up 8% from Q3-15. First 9 months of 2016 revenues were USD 43.7 million Sold Italian assets for total cash consideration of up to USD 108 Million Comple
Slide 7: Downstream Player in the Solar Market
DOWNSTREAM PLAYER IN THE SOLAR MARKET PARTS SERVICES PROJECT ASSET RAW DEVELOPMENT (MODULES, (ENGINEERING, FINANCE MANAGEMENT MATERIALS INVERTERS) CONSTRUCTION) Identify sites Debt and Equity Optimize Polysilicon and Module Best in Class and secure land Financing of total operations othe
Slide 8: Solar – Sustainable Long Term Asset Class
SOLAR – SUSTAINABLE LONG TERM ASSET CLASS Goal: Build, own and operate solar electricity plants at lowest cost per kWh Montalto, Lazio, Italy – 24 MW Cassiopea and 8.8 MW Centauro (1) Borgo Piave, Lazio, Italy – 3.5 MW Etrion Lazio (1) Atacama, Chile – 70 MW Salvador (1) Competitive Advantages of So
Slide 9: Etrion's Commitment to the Environment
ETRION’S COMMITMENT TO THE ENVIRONMENT Respecting host country's History and nature Honoring wildlife – plan construction around the “garuma gull” bird nesting cycle Respecting local history - use geophysical survey techniques for the early detection of archaeological sites prior to the construc
Slide 10: Corporate Responsibility & Sustainable Investments
CORPORATE RESPONSIBILITY & SUSTAINABLE INVESTMENTS Our approach Understanding community and regional needs Master the local dynamics Demonstrate cultural sensitivity Leverage our international expertise complementing local partner know-how Examples of community benefits We organize tours a
Slide 11: Asset Overview
ASSET OVERVIEW 11
Slide 12: Evolving Strategy – Refocusing for Growth in Japan
EVOLVING STRATEGY – REFOCUSING FOR GROWTH IN JAPAN Japan Japan Mito 9.3 MW Aomori 9.5 MW Shizukuishi 24.7 MW Komatsu 13.2 MW Partner: Hitachi High-Tech Partner: Hitachi High-Tech & Tamagawa Holdings Japan Backlog Japan Pipeline 195 MW 40-50 MW Partner: Hitachi High-Tech Chile Salvador 70 MW Partner:
Slide 13: Successful Divestment of Italian Portfolio
SUCCESSFUL DIVESTMENT OF ITALIAN PORTFOLIO On November 14, 2016 Etrion signed a Share Purchase Agreement to sell 100% of its Italian Portfolio, 149 totalling 60.1 MW, to EF Solare 24 150 78 Italia, a joint venture between Enel Green Power and F2i Fund 100 EURO million 47 Closing completed in Dec
Slide 14: Project Salvador – Chile
PROJECT SALVADOR – CHILE 70 MW Project Salvador, net 49 MW to Etrion, in operation since November 2014 Over 30% of output is contracted under a 15 year PPA. The balance remains exposed to spot market Spot market is at historical lows due to local bottleneck and over capacity causing the Compan
Slide 15: Japan
JAPAN ( etrion
Slide 16: Etrion's Partnership with Hitachi
ETRION’S PARTNERSHIP WITH HITACHI Partnership highlights Since 2013 Working together through the full development cycle Brings invaluable contributions when dealing with • Land owners • Utilities • Government authorities Hitachi provides • Best in class technology • Construction, operations
Slide 17: Mito – 9.3 MW Operational
MITO – 9.3 MW OPERATIONAL Mito site 1 Mito site 2 Mito site 3 Mito Utility Tepco Capacity 9.3 MW Ownership 87% Technology Fixed-tilt Module Canadian Solar Inverters Hitachi EPC / O&M Hitachi High-Tech Irradiation Yield 1,120 kWh/kWp FiT: ¥40/kWh Revenue Stream Term: 20 years Production 10.3 GWh/year
Slide 18: Shizukuishi – 24.7 MW Operational
SHIZUKUISHI – 24.7 MW OPERATIONAL November 1st, 2016 Inauguration Shizukuishi Sites 1 General aerial view of full plant Region Iwate Capacity 24.7 MW Ownership 87% Technology Fixed-tilt Module Canadian Solar Inverters Hitachi EPC / O&M Hitachi High-Tech Irradiation Yield 1,088 kWh/kWp FiT: ¥40/kWh R
Slide 19: Aomori – 9.5 MW Under Construction
AOMORI – 9.5 MW UNDER CONSTRUCTION June 2016 Q3-2016 February 2017 June 2017 October 2017 EPC signature and Piers and racking Commercial Connection to grid Delivery sites #1 and Notice to Proceed structure ongoing. Operation sites #3 sites #1 and #2. #2. with construction. and #4. 2016 2017 July 201
Slide 20: Komatsu – 13.2 MW Under Construction
KOMATSU – 13.2 MW UNDER CONSTRUCTION November 2016 Q1-2017 Q2-2017 Q3&Q4-2017 April 2018 June 2018 EPC contract signed. Land preparation Piers and racking structure Delivery and installation of Plant completion Plant delivery. completed. Fencing and delivery. Installation of PV modules and inverters
Slide 21: Japan Backlog & Pipeline
JAPAN BACKLOG & PIPELINE ( etrion
Slide 22: Japan – Kumamoto
JAPAN – KUMAMOTO Layout Size 40-50 MWp Region Kyushu Revenue FIT: ¥36/kWh Stage of Development Advanced Irradiation 1,140 kWh/kWp ETX share 85% Project Development Status NTP: Q4-2017 Expected NTP / COD COD: Q3-2019 ISSUE STATUS Developer Co-development agreement being renegotiated to Developer post
Slide 23: Pipeline Update
PIPELINE UPDATE FiT program in Japan remains • Central Region • Central Region attractive for Etrion to • 1 site • 1 site advance existing projects to • 55 Gross MW • 35 Gross MW • Fixed-Tilt Technology • Fixed-Tilt Technology completion over the next 36 • Expected NTP • Expected NTP months H1-201
Slide 24: Building Value in Japan
BUILDING VALUE IN JAPAN Example of Leveraged PV Project Value Creation – Undiscounted Cash Flows per 1 MWp Installed over Lifetime in Japan (in USD Million) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 NPV @ 5% @ COD Total CAPEX Dev Fee Net Equity Total Debt Total Value over 30 years Residual Value Total Distrib
Slide 25: Financial Summary
FINANCIAL SUMMARY 25
Slide 26: Financial Performance and Position
FINANCIAL PERFORMANCE AND POSITION USD m illion USD million YE-14 YE-15 YE-14 YE-15 Q3-15 Q3-15 Q3-16 Q3-16 Curtailments and lower than expected spot 12m 12m 9m 9m prices in Chile and Italy have impacted Financial Results Financial results Revenue, Gross profit and EBITDA over the Revenues 49.6 50
Slide 27: Financial Performance and Position (Cont.)
Adjusted net income 4.4 9.4 4.5 7.3 Cash flow FINANCIAL PERFORMANCE AND POSITION (Cont.) Project cash distributions 5.4 6.4 3.5 9.0 Cash flow from (used in) operations (11.1) 21.7 (4.5) 13.9 Adjusted operational cash flow 31.6 29.4 27.9 29.6 USD million YE-14 YE-15 Q3-15 Q3-16 USD m illion YE-14 YE-
Slide 28: Unaudited Pro Forma Statements
UNAUDITED PRO FORMA STATEMENTS (USD mm) Q3-2016 ITALIAN PRO FORMA REPORTED PORTFOLIO (UNAUDITED) Q3-2016 Total Revenues 43.7 (33.5) 10.2 Total Assets 582.9 (300.6) 282.3 Adjusted EBITDA 28.7 (28.8) (0.1) Net Debt on a cash basis 553.6 (246.2) 307.4 Q3-2016 CORPORATE PRO FORMA REPORTED BOND (UNAUDITE
Slide 29: Success in Capital Raising
SUCCESS IN CAPITAL RAISING Komatsu project (13.2 MW) JPY 3,560m Project USD 80m Equity EUR 80m Senior loan signed with Private Placement Secured Bond Issue EUR 222m Project Bond and Sumitomo Mitsui Trust (Corporate) (Corporate) Loan Refinancing (Italy) Bank Dec 2013 Jan 2014 Apr 2014 Jul 2014 Sep 20
Slide 30: Summary
SUMMARY ( etrion
Slide 31: Japan Project Portfolio – Potential Growth
JAPAN PROJECT PORTFOLIO – POTENTIAL GROWTH MW 350 57 MW operational & under construction 300 237 MW backlog & pipeline 60 294 MW total Japan potential capacity 250 45 200 35 55 150 294 42 100 9.5 13.2 50 24.7 9.3 0 Mito Shizukuishi Aomori Komatsu Kumamoto Brownfield Brownfield Greenfield Early
Slide 32: Summary
SUMMARY Japan – Etrion’s Growth Platform Two projects, totaling 34 MW fully operational Two projects, totaling 23 MW, under construction. Expected to reach COD within the next 12 months Approximately 240 MW in various stages of development Successful strategic partnership with Hitachi High-T
Slide 33: Appendix
APPENDIX ( etrion
Slide 34: Strong Management Team
STRONG MANAGEMENT TEAM Marco A. Northland (Chief Executive Officer and Director) - has extensive experience leading growth companies. Prior to co-founding Etrion in 2008, he was responsible for establishing and overseeing European operations for SunPower Corporation, a leading U.S. solar energy comp
Slide 35: Experienced Non-Executive Board Members
EXPERIENCED NON-EXECUTIVE BOARD MEMBERS Ashley Heppenstall (Chairman) - has worked with public companies within the Lundin Group since 1993. From 1984 until 1990, he worked in the banking sector where he was involved in project financing of oil and mining businesses. In 1990, Mr. Heppenstall was a f
Slide 36: Etrion Equity Research Coverage
ETRION EQUITY RESEARCH COVERAGE Broker Location Carnegie Oslo Cormark Securities Toronto National Bank Financial Toronto Paradigm Capital Toronto Pareto Securities Stockholm Swedbank Oslo 36
Slide 37: Contacts Details
CONTACTS DETAILS Etrion Corporation 40 SW 13 Street PH-1 Miami, FL 33130 USA Phone: +1 786-636-6449 Email: [email protected] www.etrion.com 37