Polaris Renewable Energy Inc. · TSX:PIF
Polaris Renewable Energy — Investor Presentation (May 2025)
38 slides from Polaris Renewable Energy's investor presentation, May 2025
Slide 1: Corporate Presentation
Corporate Presentation May 2025
Slide 2: Forward-Looking Information
Forward-Looking Information This Presentation contains certain “forward-looking information” which may include, but is not limited to, statements with respect to future events or future performance, management’s expectations regarding the Company’s pro-forma financial profile, growth of cash flow pe
Slide 3: Overview
POLARIS RENEWABLE ENERGY
Slide 4: Capital Markets Snapshot
Capital Markets Snapshot SHARES OUTSTANDING (1) DEBT (1) ANNUAL DIVIDEND 21.0 mm US$225mm US$0.60 MARKET CAPITALIZATION (2) CASH ON HAND DIVIDEND YIELD US$177 mm US$91 mm 7.1% LTM EBITDA(3) ENTERPRISE VALUE (4) EV / EBITDA MULTIPLE (3) ~US$55 mm ~US$325 mm ~ 5.3x PRICE LTM OPERATING CASH C$11.75 FLO
Slide 5: Polaris owns, operates and develops renewable energy projects in Latin America and the Caribbean
Polaris owns, operates and develops renewable energy projects in Latin America and the Caribbean Description Locations and key portfolio information Headquarters • Polaris owns and operates eight renewable energy assets across geothermal, Geothermal hydropower, solar, and wind in six different count
Slide 6: Polaris - Project Overview
Polaris - Project Overview DOMINICAN NICARAGUA REPUBLIC Name: Canoa 1 Production: 25MW Type: Solar Operating since: 2020 Name: San Jacinto Production: 82MW PUERTO RICO Type: Geothermal Operating since: 2013 Name: Punta Lima PANAMA Production: 26MW Type: Wind Power Operating since: 2024 ECUADOR PERU
Slide 7: Long term contracts with government entities
Long term contracts with government entities Country Asset Off-taker 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Credit Rating1 San Jacinto Dis Norte Dis Sur Moody’s B2 S&P B Nicaragua Government owned Fitch B Canoa Edesur Moody’s Ba3 S&P BB Dominican Republi
Slide 8: Bond Financing
Bond Financing Completed Bond Financing November 2024 US$175 million (with $50 million “Tap” Feature) 9.5% Coupon 5 Year term Non-Amortizing Use of Proceeds Repaid San Jacinto, Brookfield and SJDM Loans - ~$118 million Punta Lima Acquisition - $20 million Remaining capital for Orga
Slide 9: Overview of debt post bond issue
Overview of debt post bond issue Simplified corporate structure with debt instruments 1 USD 175m Polaris Renewable Energy senior secured green bond Bond 1st lien security Bond structural 2nd lien security El Carmen 8 de Canoa Solar Canchayllo (Peru) Agosto Park (DR) (Peru) 2 Generación 3 Emerald Sol
Slide 10: Right-Sized Balanced Sheet
Right-Sized Balanced Sheet Total Debt proforma of ~$225 million ~3.8x Total Debt to EBITDA Net Debt to EBITDA of ~ 2.5x Still conservative given contracted nature of the business Cash of ~$70 million available post-issue for growth – no need for equity Investment of $70 mm Unlevered 50%/
Slide 11: 5-Year Growth Plan
5-Year Growth Plan Development in EBITDA split by country and EBITDA (USDm) Nicaragua Puerto Rico (1) Nicaragua Other Peru Panama DRC Ecuador EBITDA-share of Nicaragua reduced from 93% to 67% between 2021 and LTM Q2’24 3% 3% 7% 9% Targeting further increased scale and ~33-40% diversification through
Slide 12: Proforma Cash
Proforma Cash @ March 31,2025 Consolidated Cash $90 million Minimum Cash Balance per Bond Terms $15 million Available Cash $75 million Punta Lima Remaining Payment $5 million Net Cash Available for Investments $70 million It is important to note that there is a “tap” feature of the Bond for an add
Slide 13: Near-Term Organic Growth Focus
Near-Term Organic Growth Focus Country Project Investment ~EBITDA Pickup COD Timing Puerto Rico ASAP Program $60 million $15 million Q3-2026 Solar + Battery $5 million $1.5 million Q1-2027 Dominican Republic Canoa + Battery (1) $35-$40.0 million $6.0 to $7.0 million Q4-2026 Canoa 2 (a) $10.0 million
Slide 14: Conservative revenue model and financial strategy
Conservative revenue model and financial strategy • 98% of Revenues contracted • Bulk of Revenues contracted into 2039 and beyond Contracted Revenue Model • 100% of Revenues in US$ • LTM EBITDA and operating cash flow of $55 million and $29 million respectively Robust cash flow • US$91m in cash bala
Slide 15: Why Latin America and the Caribbean?
Why Latin America and the Caribbean? Grids continue to grow ~ 3 to 6% per year. Per Capita power consumption remains a fraction of N.A i.e. 1/5th to 1/10th Nuclear, coal and large dams much less likely than N.A. Renewables key Fossil fuels still play a key role in most grids – pricing po
Slide 16: History and milestones
History and milestones • USD 60m equity infusion, resulting • The two ROR hydro power assets • Secured USD 110m debt to • Completed construction of the in Re-capitalization Transaction in Peru achieved commercial refinance existing loans for San Vista Hermosa solar parks in being consummated operati
Slide 17: Key Assets Are in Place
Key Assets Are in Place Strong team - Offices in Toronto, Growing Approximately Lima, Panama, Managua, Markets 235 Employees Quito, DR in total Current Cash flow ESG Compliant in all Identifiable generation to fund aspects growth growth – always have been – opportunities key for attracting capital 1
Slide 18: Global and regional management team
Global and regional management team Marc Murnaghan Anton Jelic Alexis Osorno Michael Kosiancic Guzman Fernandez Denise Parada CEO CFO SVP – Latin America EVP – Project Finance VP- Corporate Development VP – Corporate Communications Yumey Fernandez Alba Seisdedos Fernando Joffre Leonel Poveda Marcela
Slide 19: Polaris ESG – Core Focus – Social Commitment
Polaris ESG – Core Focus – Social Commitment Making a positive impact on the communities/territories in which we develop projects. Robotics Educational program Remodeling of School since 2019. Bathrooms. Installation of sewers and Water Filter for bridges. communities and fountain Agricult
Slide 20: Assets Overview
POLARIS RENEWABLE ENERGY Assets Overview POLARIS RENEWABLE ENERGY
Slide 21: Nicaragua | Overview of San Jacinto asset
Nicaragua | Overview of San Jacinto asset Moody’s B2 S&P B+ Fitch B Geothermal Description • San Jacinto is one of the largest geothermal platforms in Lat-Am and has operated since 2013 • PPA in place until 2039 with government-owned off-taker Dis Norte Dis Sur • Combined nameplate capacity of 82MWs
Slide 22: San Jacinto Project – Credit Highlights
San Jacinto Project – Credit Highlights Project Summary Geographical Overview Strong Financial Profile with Solid Free Cash Flow Generation Central America Nicaragua 2023 EBITDA: ~$47 million (1) ~$94 million of project level debt (2) − Current interest rate: SOFR +701 bps − Can be refinanced
Slide 23: Similar Operational Geothermal Plants – Useful Lives
Similar Operational Geothermal Plants – Useful Lives Project Current Country ~Start Date ~Years Capacity Tongonan Philippines 1982 40 110 MWs Palinpinon Philippines 1983 40 110 MWs Bacman Philippines 1994 30 Wairakei New Zealand 1958 65 180 MWs Ohaaki New Zealand 1989 35 60 MWs Krafla Iceland 1978 4
Slide 24: Puerto Rico | Overview of Punta Lima
Moody’s Aaa Puerto Rico(1)| Overview of Punta Lima S&P AA+ Fitch AA+ Wind power Description • Punta Lima in Puerto Rico has 26MW of total capacity, delivered by 13 turbines (expandable) • Initial COD in Q1 2013 with 23.1MW installed capacity at the time and operational until Hurricane Maria in Sep 2
Slide 25: Peru | Overview of run-over-river hydropower assets
Peru | Overview of run-over-river hydropower assets Hydro power Moody’s Baa1 Description 8 de Agosto S&P BBB- & El Carmen • 8 de Agosto is Polaris’ largest hydropower run-over-river hydropower asset in Peru Fitch BBB - Installed capacity of 20MWs - Power generated is transferred to substation locate
Slide 26: Dominican Republic | Overview of Canoa
Moody’s Ba3 S&P BB Dominican Republic | Overview of Canoa Fitch BB- Solar power Description • Polaris owns and operates the 25 MW Canoa 1 Solar Park in the Dominican Republic, with a 20-year PPA in place with government owned Edesur Dominicana • Canoa 1 is the first of two development phases, where
Slide 27: Panama | Overview of Vista Hermosa
Panama | Overview of Vista Hermosa Moody’s S&P Baa3 BBB Fitch BB+ Solar power Description • The Vista Hermosa solar project is Polaris’ asset in Panama • Construction activities started in 2022 and were completed by Polaris in 2023 • The plants are connected to the national transmission network Vist
Slide 28: Ecuador | Overview of San Jose de Minas
Ecuador | Overview of San Jose de Minas Moody’s Caa3 Hydro power S&P B- Description Fitch CCC+ • The San Jose de Minas run-over-river hydro project is Polaris’ current asset in Ecuador San Jose de Minas • The asset has a PPA with an Ecuadorian government entity for the sale of all power production a
Slide 29: Appendices
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Slide 30: Project Debt Summary
Project Debt Summary Project Amount Fixed/Floating? Rate San Jacinto $97 million Floating – SOFR +7.01% 12.42% Peru – Senior Debt $19 million Fixed 7.00% Peru – Brookfield $25 million Fixed 8.75% Canoa $33 million Fixed 7.00% San Jose de Minas $5 million Fixed 7.95% Total $179 million 10.0% Blended,
Slide 31: Appendix: Leadership Team Biographies
Appendix: Leadership Team Biographies
Slide 32: Highly experienced board of directors
Highly experienced board of directors • Joined Polaris Board in May 2015 • Marc became CEO of Polaris • Been a Director at Polaris since and is Managing Partner at Faros Renewable Energy in May 2015, 2011, with over 30 years of Infrastructure Partners LLC, with 25 successfully leading its experience
Slide 33: Strong Management Team
Strong Management Team Marc Murnaghan Anton Jelic Chief Executive Officer/Board Member Alexis Osorno Chief Financial Officer SVP Latin America Marc joined Polaris Renewable Energy Inc. as CEO in May Anton joined Polaris Renewable Energy Inc. in December Alexis initially joined Polaris Renewable Ener
Slide 34: Experienced Corporate & Regional Management
Experienced Corporate & Regional Management Michael Kosiancic Guzman Fernandez Denise M. Parada Executive Vice President, Project Finance Vice President Corporate Development VP, Corporate Communications Michael joined Polaris in September 2020 as Executive Guzman joined Polaris as VP, Corporate Dev
Slide 35: Experienced Corporate & Regional Management
Experienced Corporate & Regional Management Yumey Fernandez Fernando Joffre Director, Project Development Alba Seisdedos Director, Finance VP, Taxation & Legal Affairs Yumey is responsible for leading all aspects of Financial Fernando joined Polaris in June 2022. He is responsible for the Alba joine
Slide 36: Experienced Corporate & Regional Management
Experienced Corporate & Regional Management Leonel Poveda Johnny Bendaña Marcela Bascope Regional Operations & Maintenance Manager Regional Corporate HR Manager Regional Social & Environmental Sustainability Manager Leonel joined Polaris in May of 2008. He currently holds Johnny joined Polaris in Ju
Slide 37: Experienced Corporate & Regional Management
Experienced Corporate & Regional Management Carlos Diaz Carlos Perez Regional Financial Manager Regional Financial Controller Carlos joined Polaris in August 2010, at its subsidiary Carlos joined Polaris team in November 2011 and has Polaris Energy Nicaragua, JaneS.A. Doeand has held various held va
Slide 38: 7 St Thomas St., Suite 606 Toronto, ON Canada M5S 2B7
7 St Thomas St., Suite 606 Investor Relations Email: info@polarisrei.com Toronto, ON Canada 647-245-7199 Website: polarisrei.com M5S 2B7
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