Slide 1: Q3-2017 Earnings Call
Q3-2017 Earnings Call November 14, 2017 Misawa 1 site 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 Corporation
ETRION CORPORATION COMPANY OVERVIEW FINANCIAL SUMMARY FINANCIAL SUMMARY ▪ Japan focused Independent power producer (IPP) that Recent Share Price (TSX/OMX: ETX) C$0.25 / SEK 1.77 develops, builds, owns and operates ground-based solar Shares Outstanding 334.1MM photovoltaic (PV) power generation plant
Slide 5: Key Highlights
KEY HIGHLIGHTS Three months Nine months ▪ Advanced on the construction of the 13.2 MWs Komatsu project in Q3-17 Q3-16 Q3-17 Q3-16 northern Japan, reaching 75% completion. We expect the park to Electricity production (MWh) 49,174 41,705 141,563 119,957 be operational by end of Q2-18 Financial perform
Slide 6: Japan
JAPAN ( etrion
Slide 7: Renewable Energy Market in Japan
RENEWABLE ENERGY MARKET IN JAPAN Installed Capacity Approved Capacity Category Balance (MWp) (MWp) (MWp) PV Solar (House) 5,588 6,459 871 PV Solar (Industrial) 33,824 60,459 26,635 Wind 929 8,200 7,271 Biomass 1,000 14,612 13,612 Note: Approved capacity is adjusted after dropping 35.5 GW cancelled b
Slide 8: Etrion Position in Japan
ETRION POSITION IN JAPAN # Name MW Japan – Cumulative PV Market Capacity 1 Orix Corporation 520 2 SB Energy 278 70 3 Eurus Energy HD 237 60 4 Mitsui & Co. 232 5 Marubeni Corp. 202 50 GWp 6 NTT Facilities 200 7 Mitsubishi Corp. 136 40 8 Pacifico Energy 131 30 Japan Renewable 9 Energy 123 20 10 Renova
Slide 9: Etrion Business
ETRION BUSINESS 9
Slide 10: Mito – 9.3 MW Operational
MITO – 9.3 MW OPERATIONAL MITO comparison (MWh) MITO Utility Tepco 1400 Capacity 9.3 MW 1200 Ownership 87% 1000 Technology Fixed-tilt Module Canadian Solar 800 Inverters Hitachi 600 EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,120 kWh/kWp 200 FiT: ¥40/kWh Revenue Stream Term: 20 years 0 Produ
Slide 11: Shizukuishi – 24.7 MW Operational
SHIZUKUISHI – 24.7 MW OPERATIONAL SHIZUKUISHI Utility Tohuko Capacity 24.7 MW Ownership 87% Technology Fixed-tilt Canadian Module Solar Inverters Hitachi EPC / O&M Hitachi High-Tech Irradiation Yield 1,088 kWh/kWp FiT: ¥40/kWh Revenue Stream Term: 20 years Production 26.1 GWh/year Total Project Cost
Slide 12: Misawa – 9.5 Operational
MISAWA – 9.5 OPERATIONAL MISAWA Utility Tohoku Capacity 9.5 MW Ownership 60% Technology Fixed-tilt Module AOU Inverters Hitachi EPC / O&M Hitachi High-Tech Irradiation Yield 1,126 kWh/kWp FiT: ¥36/kWh Revenue Stream Term: 20 years Production 10.7 GWh/year Total Project Cost ¥3.5Bn Commencement of Fe
Slide 13: Komatsu – 13.2 MW Under Construction
KOMATSU – 13.2 MW UNDER CONSTRUCTION November 2016 Q1-2017 Q3&Q4-2017 April 2018 June 2018 EPC contract Land preparation Completion of PV modules, Plant completion Plant delivery. signed. completed. Fencing and Inverters and substation. and commissioning. June 30 th temporary offices. Currently @ ci
Slide 14: Backlog Activities
BACKLOG ACTIVITIES 14
Slide 15: 45 MWs Brownfield TK-1
45 MWs BROWNFIELD TK-1 2017 2018 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PPA Land Secured Permits incl. Forest Development Financial Close PROJECT HIGHLIGHTS Size 45 MWp ETX share 85% Region Southern Japan Expected: NTP / COD NTP: Q4-2018 COD: Q4-2020 Revenue FIT: ¥36/kWh Development Period
Slide 16: 45 MWs Greenfield TK-2
45 MWs GREENFIELD TK-2 2017 2018 2019 OCT NOV DEC JAN FEB MAR APR MAY OCT NOV DEC JAN FEB PPA (Done) Land Secured All Necessary Permits for Construction Acquired incl. Forest Development Financial Close PROJECT HIGHLIGHTS Size 45 MWp ETX share 100% Region Central Japan Expected: NTP / COD NTP: Q1-20
Slide 17: 60 MWs Brownfield TK-3
60 MWs BROWNFIELD TK-3 2017 2018 OCT NOV DEC JAN FEB MAR OCT NOV DEC PPA (Done) Land Secured Environmental Impact Assessment Completed Forest Development Financial Close PROJECT HIGHLIGHTS Size 60 MWp ETX share 50% Region South-Central Japan Expected: NTP / COD NTP: Q4-2018 – COD: Q2-21 Revenue FIT:
Slide 18: 40 MWs Brownfield TK-4
40 MWs BROWNFIELD TK-4 2017 2018 NOV DEC JAN FEB NOV DEC PPA (Done) Land Secured (Done) Environmental Impact Assessment – Under consultation PROJECT HIGHLIGHTS Size 40 MWp ETX share 100% Region Central Japan Expected: NTP / COD NTP: open. Depends on EIA Revenue FIT: ¥24/kWh Development Period Since
Slide 19: Q3-2017 Financial Review
Q3-2017 FINANCIAL REVIEW ( etrion
Slide 20: Financial Results
FINANCIAL RESULTS Etrion consolidated results ▪ Revenues and project-level EBITDA up relative to Q3-16 due to 8.0 positive operating performance and additional production in 7.0 Japan. 6.0 +106% ▪ In Q3-17 electricity production in Japan increased 350% quarter- 5.0 over-quarter as a result of the ne
Slide 21: Financial Position
FINANCIAL POSITION September 30 , 2017 Financial position by segment US$ million Japan Corp TOTAL Property, plant and equipment 137.3 0 137.3 Intangible assets 5.4 4.1 9.5 Cash and cash equivalents 19.6 41.6 61.2 Other assets 10.0 9.4 19.4 Total assets 172.3 55.1 227.4 Borrowings 141.4 48.3 189.8 Tr
Slide 22: Cash Flow Statement
CASH FLOW STATEMENT Unrestricted cash evolution US$ million Restricted Unrestricted Total December 31, 2016 18.9 42.3 61.2 50 Project level EBITDA 10.0 10.0 Project cash distributions (8.9) 7.7 (1.2) Corporate G&A (4.9) (4.9) 7.7 6.6 Taxes paid (0.3) (0.7) (1.0) 45 2.0 0.8 Komatsu development fee (2
Slide 23: PV Salvador Deconsolidation
PV SALVADOR DECONSOLIDATION Continued segment and fully-consolidated disclosure of Salvador results was presenting an inaccurate picture of Etrion’s business. The change in accounting treatment better aligns our disclosure with management’s focus on delivering value to shareholders through our activ
Slide 24: 2017 Guidance
2017 GUIDANCE Given the decision to deconsolidate our investment in PV Salvador as of Q3-17, Management is providing restated 2017 Guidance based on our Japanese assets only. The following guidance range is unchanged from that provided in March 15, 2017 but is only for Japan. US$ million otherwise s
Slide 25: Summary
SUMMARY ( etrion
Slide 26: Well Positioned for Growth
WELL POSITIONED FOR GROWTH ▪ Fully funded through 2018 with US$41 million in cash and ample access to very competitive project level debt ▪ Strong growth potential with target to reach NTP between 100 – 150 MW within the next 18 months ▪ Additional healthy pipeline of 200 MWs to complement existing
Slide 27: New Etrion Website
NEW ETRION WEBSITE www.etrion.com 27
Slide 28: Contact Information
Contact Information Etrion Corporation 40 SW 13 Street, PH-1 Miami, FL 33130, USA Phone: +1 786.636.6449 www.etrion.com 28