Slide 1: Etrion Corporate Presentation
HIGH YIELD BOND SEMINAR ETRION CORPORATE PRESENTATION SEPTEMBER 13, 2016 1
Slide 2: Disclaimer
DISCLAIMER These materials and the information contained herein are being presented by Etrion Corporation (the “Company”). By attending a meeting where these materials are presented, or by reading them, you agree to be bound by the following limitations and notifications. These materials are strictl
Slide 3: Corporate Overview
CORPORATE OVERVIEW 3
Slide 4: Etrion Corporation
ETRION CORPORATION COMPANY OVERVIEW FINANCIAL SUMMARY Independent power producer (IPP) that develops, builds, owns and Recent Share Price (TSX/OMX: ETX) C$0.35 / SEK 2.41 operates ground-based solar photovoltaic (PV) power generation plants in three key markets (Italy, Chile and Japan) Shares Outs
Slide 5: Etrion at a Glance
ETRION AT A GLANCE Operational Excellence • 23 Solar plants with aggregate capacity of 139MW operating in three countries (Italy, Japan, Chile) all centrally monitored with web based monitoring system • Power plants consistently performing above plan Proven Technology • Utility-scale solar proj
Slide 6: Downstream Player in the Solar Energy Market
DOWNSTREAM PLAYER IN THE SOLAR ENERGY MARKET PARTS SERVICES RAW PROJECT ASSET (MODULES, (ENGINEERING, DEVELOPMENT MATERIALS FINANCE MANAGEMENT INVERTERS) CONSTRUCTION) Solar facilities are developed in new markets Raw materials Solar cells are Third parties (e.g., polysilicon) then assembled
Slide 7: Etrion's Global Platform
ETRION’S GLOBAL PLATFORM Japan Japan 34.2 MW (27.2 MW (3)) Italy 9.3 MW (8.1 MW (2)) Partner: Hitachi High-Tech 60 MW Partner: Hitachi High-Tech & Tamagawa Holdings Japan Backlog 66 MW (56.5 MW (3)) Japan Pipeline 190 MW (162 MW (4)) Additional Partner: Hitachi High-Tech Chile Pipeline 72 MW Chile 7
Slide 8: Italian Operating Assets
ITALIAN OPERATING ASSETS Project Sites Capacity Technology Modules Inverters EPC/O&M (MW) Contractor Cassiopea 1 24.0 Single axis SunPower SMA SunPower Helios ITA- 2 10.0 Single axis Yingli Bonfiglioli ABB 3 Centauro 1 8.8 Single axis SunPower SMA SunPower Helios ITA 7 6.4 Single axis Solon Santerno
Slide 9: Chilean Assets
CHILEAN ASSETS Capacity Contract Project Region Sites Ownership Status MW Regime Merchant + Salvador SIC (Central) 1 70 70% Operational PPA Aguas SING Merchant + Shovel-ready Blancas 1 32 100% (Northern) PPA pipeline 2A Aguas SING Merchant + Shovel-ready Blancas 1 24 100% (Northern) PPA pipeline 2B
Slide 10: Etrion's Partnership with HHT
ETRION’S PARTNERSHIP WITH HHT Partnership Scope Development agreement to build an IPP business in Japan Hitachi High-Tech to provide: Technology EPC and O&M services Relationship with utilities and local communities Etrion to provide: Project development platform Asset management ser
Slide 11: Mito – 9.3 MW Operational
MITO – 9.3 MW OPERATIONAL Mito site 1 Mito site 2 Mito site 3 JAPAN PRODUCTION MWh 1400 1200 1000 800 600 400 200 0 Mito site 4 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Mito site 5 2015 2015 2015 2015 2015 2015 2016 2016 2016 2016 2015-2016 2015-2016 Prior Year Production (May 15 - June 15) A
Slide 12: Shizukuishi – 24.7 MW Under Construction
SHIZUKUISHI – 24.7 MW UNDER CONSTRUCTION View of the SW section of the plant Shizukuishi Status Under Construction View of the NW section of the plant. Sites 1 Region North (Iwate) Capacity 24.7 MW Ownership 87% Technology Fixed-tilt Module Canadian Solar Inverters Hitachi EPC / O&M Hitachi High-Tec
Slide 13: Aomori – 9.5 MW Under Construction
AOMORI – 9.5 MW UNDER CONSTRUCTION Site 1 & 2 Aomori Status Under Construction Sites 4 Region Tohoku Capacity 9.5 MW Ownership 60% Technology Fixed-tilt Module AOU Inverters Hitachi EPC / O&M Hitachi High-Tech Site 3 Irradiation Yield 1,126 kWh/kWp FiT: ¥36/kWh Revenue Stream Term: 20 years Producti
Slide 14: Japan Backlog: Kumamoto 52.5 MW and Komatsu 13.2 MW
JAPAN BACKLOG Size 13.2 MWp Size 52.5 MWp KUMAMOTO 52.5 MW KOMATSU 13.2 MW Region Hokuriku Region Kyushu Revenue FIT: ¥32/kWh Revenue FIT: ¥36/kWh Stage of Development Advanced Stage of Development Advanced Irradiation 1,100 kWh/kWp Irradiation 1,140 kWh/kWp ETX share 55%-70% ETX share 85%-100% Expe
Slide 15: Pipeline Update
PIPELINE UPDATE Japan • Central Region • Central Region • 1 site • 1 site FiT program in Japan remains attractive • 55 Gross MW • 35 Gross MW for Etrion to advance new projects to • Fixed-Tilt Technology • Fixed-Tilt Technology completion over the next 48 months • Expected NTP • Expected NTP Etr
Slide 16: Building Value in Japan
BUILDING VALUE IN JAPAN Worked Example of Leveraged PV Project Value Creation – Undiscounted Cash Flows per 1 MWp Installed over Lifetime in Japan [m USD] 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Net Equity Total Debt Dev Fee Residual Value Total Value over 30 years Total CAPEX Total Distributions (2
Slide 17: Financial Summary
FINANCIAL SUMMARY 17
Slide 18: Financial Performance and Position
FINANCIAL PERFORMANCE AND POSITION USD million USD million YE-14 YE-15 YE-14 YE-15 Q2-15 Q2-15 Q2-16 Q2-16 Curtailments and lower than expected spot prices in 12m 12m 6m 6m Chile and Italy have impacted Revenue, Gross profit Financial Results Financial results and EBITDA over the last two quarters
Slide 19: Etrion Bond Price and Spread
ETRION BOND PRICE AND SPREAD ETRION (ETXCN 8 04/23/2019) 105 ETRION (ETXCN 8 04/23/2019) 100 95 90 Cash price (%) 85 80 75 70 65 60 Etrion Bond Z Spread 1,800 ETRION BOND Z SPREAD 1,600 1,400 1,200 Z-Spread (Bps) 1,000 800 600 400 200 0 19
Slide 20: Capital Structure & Project-Level Debt Amortization
CAPITAL STRUCTURE & PROJECT-LEVEL DEBT AMORTIZATION ETRION EtrionCAPITAL STRUCTURE Capital Structure SENIOR DEBT OUTSTANDING 500 Debt: % US$ mm Corporate Bond 88.8 450 441 Project-level debt: 432 428 (1.) Italy: 405 Project bond 37.6 400 382 Non-recourse senior debt 216.0 357 (2.) Chile: 350 US$ mm
Slide 21: Capital Structure Management
CAPITAL STRUCTURE MANAGEMENT Liquidity Company has cash on hand to fund its 2016 obligations Company is looking at asset sales as most cost effective way to raise additional liquidity Strengthen B/S Project debt amortizes gradually over time Company willing to bring in partners at projec
Slide 22: Summary
SUMMARY 22
Slide 23: Overall Project Portfolio – Potential Growth
OVERALL PROJECT PORTFOLIO – POTENTIAL GROWTH MW Installed Capacity Evolution (1) 72 501 100% 90% 139 MW operational 190 34 MW under construction and fully funded 80% 328 MW pipeline 70% 3.6x growth in installed capacity 60% 50% 66 40% 34 30% 70 9 20% 60 10% 0% Italy Chile Japan Japan Under J
Slide 24: Summary
SUMMARY Japan - Near-Term Growth We continue to be bullish about Japan Expect to begin construction on next 2 solar projects within the next 6-9 months with an aggregate capacity of 66 MW The strong Etrion-Hitachi partnership is expected to expand our pipeline for projects in 2017-2018 Jap
Slide 25: 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 26: Experienced Non-Executive Board Members
EXPERIENCED NON-EXECUTIVE BOARD MEMBERS Ashley Heppenstall (Chaiman) - 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 fo
Slide 27: Contacts Details
CONTACTS DETAILS Etrion Corporation 40 SW 13 Street PH-1 Miami, FL 33130 USA Phone: +1 786-636-6449 Email: info@etrion.com www.etrion.com 27