Slide 1: Q3-18 Operations and Finance Update
Q3-18 Operations and Finance Update November 7th 2018 Powered by the Sun Developing, building and operating solar power generation plants 1 www.etrion.com | TSX: ETX
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
etnon Corporate Overview
Slide 4: Etrion – The renewable platform of the Lundin Group
Etrion – The renewable platform of the Lundin Group Mining Sector Oil & Gas/Energy Sector THE LUNDIN GROUP WORLDWIDE OPERATIONS 4 www.etrion.com | TSX: ETX
Slide 5: Etrion Corporation
Etrion Corporation Company Overview Financial Summary FINANCIAL SUMMARY • Japan focused Independent power producer (IPP) that Recent Share Price (TSX/OMX: ETX) C$0.265 / SEK 1.86 develops, builds, owns and operates ground-based solar photovoltaic (PV) power generation plants Shares Outstanding 334.1
Slide 6: Greater control of value chain with HHT partnership
Greater control of value chain with HHT partnership RAW PARTS SERVICES PROJECT ASSET (MODULES, (ENGINEERING, DEVELOPMENT MATERIALS FINANCE MANAGEMENT INVERTERS) CONSTRUCTION) • Manufacturing • Best in Class • Identify sites • Debt and Equity • Optimize • Polysilicon and of electronic Engineering and
Slide 7: 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 Shizukuishi, Japan– 24 MW Atacama, Chile – 70 MW Shizukuishi (1) Salvador (1) Competitive Advantages of Solar Power Easy to permit Lowest marginal cost Fast to build Competitive at
Slide 8: 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 9: Corporate responsibility and sustainable investments
Corporate responsibility and 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
Slide 10: Renewable energy market in Japan
Renewable energy market in Japan Installed Capacity Approved Capacity Balance Category (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 11: Asset Description
etnon Asset Description 11
Slide 12: Mito – 9.3 MW operational
Mito – 9.3 MW operational Mito Mito (MWh) Utility Tepco 1400 Capacity 9.3 MW 1200 Ownership 87% 1000 Technology Fixed-tilt 800 Module Canadian Solar 600 Inverters Hitachi EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,120 kWh/kWp 200 FiT: ¥40/kWh 0 Revenue Stream Term: 20 years Production 10.3
Slide 13: Shizukuishi – 24.7 MW operational
Shizukuishi – 24.7 MW operational Shizukuishi Shizukuishi (MWh) Utility Tohoku 3500 Capacity 24.7 MW 3000 Ownership 87% 2500 Technology Fixed-tilt 2000 Module Canadian Solar 1500 Inverters Hitachi 1000 EPC / O&M Hitachi High-Tech 500 Irradiation Yield 1,088 kWh/kWp 0 FiT: ¥40/kWh Revenue Stream Term
Slide 14: Misawa – 9.5 MW operational
Misawa – 9.5 MW operational Misawa Misawa (MWh) Utility Tohoku 1400 Capacity 9.5 MW 1200 Ownership 60% Technology Fixed-tilt 1000 Module AOU 800 Inverters Hitachi 600 EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,126 kWh/kWp 200 FiT: ¥36/kWh Revenue Stream 0 Term: 20 years Production 10.7 GWh/
Slide 15: Komatsu – 13.2 MW operational
Komatsu – 13.2 MW operational Komatsu Komatsu (MWh) Utility Hokuriku 2000 Capacity 13.2 MW 1500 Ownership 85% Technology Fixed-tilt 1000 Module Canadian Solar 500 Inverters Hitachi EPC / O&M Hitachi High-Tech 0 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Irradiation Yield 1,087 kWh/kWp Equity Case expect. en
Slide 16: Backlog Project
etnon Backlog Project 16
Slide 17: 45 MW – Niigata prefecture - Greenfield TK-2
45 MW – Niigata prefecture - Greenfield TK-2 2017 2018 2019 DEC JAN FEB MAR APR MAY OCT NOV DEC Q1-19 Q2-19 PPA (Done) Land Purchased Land survey, soil report, engineering with EPC Financial Close PROJECT HIGHLIGHTS Size 45 MWp ETX share 100% Region Niigata Prefecture - Japan Expected: NTP / COD NTP
Slide 18: Q3-18 Financial Update
etnon Q3-18 Financial Update 18
Slide 19: Financial results
Financial results Etrion consolidated results Q3-18 Segment information Q3-17(1) Q3-18(2) US$ millions Japan Corp TOTAL Revenues 6.2 - 6.2 6.0 +27% Operating expenses (1.3) - (1.3) 5.0 G&A expenses (0.1) (1.1) (1.2) 4.0 Additional termination fee - 0.2 0.2 Other income 0.3 - 0.0 0.3 3.0 6.2 US$ mill
Slide 20: Financial position
Financial position Consolidated Balance Sheet September 30, 2018 US$ millions Japan Corp TOTAL ▪ Etrion has a working capital of $26.7 Property, plant and equipment 143.3 0.1 143.3 million and a consolidated cash position of $30.4 million, of which $12.1 million is Cash and cash equivalents 18.3 12.
Slide 21: Cash and liquidity
Cash and liquidity Unrestricted cash reconciliation Project cash 40 distributions 35 2.1 3.8 30.4 30 9.0 Bond refinancing transaction 25 US$ millions 0.8 4.2 20 1.3 15 0.5 0.8 Niigata: land 12.1 10 acquisition plus dev costs 5 - Liquidity to fund the growth of the business in Japan in 2018. Unrestri
Slide 22: Summary
Summary 22
Slide 23: Key Investment Highlights
Key Investment Highlights • Strong presence in Japan in the solar sector with installed based on 57 MW operation assets • High degree of certainty to commence construction of additional 45 MW within the next 6 months • Fully funded for next 12 months • The company will update the status of the pipel
Slide 24: Contact Information
Contact Information Christian Lacueva Marco A. Northland Martin Oravec Chief Financial Officer Chief Executive Officer Chief Investment Officer clacueva@etrion.com mnorthland@etrion.com moravec@etrion.com Etrion Corporation Rue du Commerce 4 1204 Geneva, Switzerland info@etrion.com www.etrion.com 24