Invinity Energy Systems Plc · LSE:IES
Invinity Energy Systems — Camco International — Investor Presentation (July 2008)
18 slides from Invinity Energy Systems's investor presentation, July 2008
Slide 1: Investor presentation: A full service climate change business
Investor presentation A full service climate change business Jeff Kenna, CEO Scott McGregor, CFO Keith Regan, IR July 2008
Slide 2: Disclaimer
Disclaimer These presentation materials (the "Presentation Materials”) are being solely issued to and directed at (a) persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act
Slide 3: Summary
Summary • We are building the world’s leading climate change business Full range of carbon services (carbon credits / emission reduction, consulting and ventures) • >€220m net cash flow to Camco 151.0m tonnes in the contracted project portfolio, 127m expected delivery 41.7m tonnes “in specie”,
Slide 4: We are building the world's leading climate change business
We are building the world’s leading climate change business Client needs Consultancy Carbon credits Ventures Commission Time-based fees Success fees fees & margin Taking value across the supply chain Investor presentation 3
Slide 5: > €220m net cash flow into Camco
> €220m net cash flow into Camco Carbon Gross Camco receives a Undelivered price = €12 Risk factor Gross cashflow (in total tonnes share of recurring Delivered price = €13.5 127/151 from 2007 to 2013) carbon credit revenues Cash share 37.5m 10-20% commission €1.67 / gross tonne 84% €60m Carbon share
Slide 6: A mature contracted portfolio
A mature contracted portfolio Carbon asset project site development, qualification, commercialisation and management Project site development Financed 84% Under construction* 76% Operational 58% Regulatory management PDD 74% LoA 52% Validation 53% Submitted 49% Registration 29% Deal structuring & co
Slide 7: High quality carbon managed by our teams on the ground
High quality carbon managed by our teams on the ground • A global team, locally based to closely manage our projects • High quality projects – large average project size • Sell-side strategy – aligns Camco with our clients; long term relationships • Technical resource – highly skilled staff Investor
Slide 8: Addressing recent issues in the carbon markets
Addressing recent issues in the carbon markets Potential risk Camco’s position Carbon price performance in 2008 35 • Registration and • Camco develops large, issuance risk high quality projects • Each project is carefully 30 managed • Our team is “on the 25 ground” • “DOE” • “Preferred service” 20 a
Slide 9: Performance update – Consulting
Performance update – Consulting • Revenue growth 2007 > 40%, with increasing profitability expected • Strategy is leverage and move to a seamless carbon partnership service offering • Actual synergies delivered this year Entry into the USA – footprinting for North West Power, Florida Crystal, Net
Slide 10: Performance update – Camco Ventures
Performance update – Camco Ventures • Climate Leaders asset management vehicle – McCommas • Plan Vivo Land Use VERs – 1st 40,000 tonnes from Mexico to be placed. 6 projects (China, Malawi, 2 Kenya, Rwanda, Tanzania) • EPES – Buildings Certification. • GEEREF investment fund for East Africa – proposa
Slide 11: Our strategy and 2008 activity
Our strategy and 2008 activity • Leadership • We are managing one of the world’s largest portfolios • Leverage • Grow the portfolio: sectors, technologies, regions & synergies • M&A • Monitor the market for acquisition targets • Commercialisation • Portfolio strategy • Integrated offering • Carbon p
Slide 12: Our strategy and 2008 activity by region
Our strategy and 2008 activity by region China Russia • Commercialisation of in specie credits • Carbon partnership with Evraz in 2008 • Progress portfolio & register with • Carbon partnership contract Russian government • Land use credits • First sales of JI credits (ERUs) • Progress portfolio • As
Slide 13: Concluding remarks
Concluding remarks • We are building the world’s leading climate change business • >€220m cash flow to Camco from current contracted portfolio • On track to move into profitability in 2008 • A mature project portfolio, well managed • The market opportunity is significant • Our strategy is to grow th
Slide 14: Appendix: How the carbon market works
Appendix: How the carbon market works The “Compliance” market The “Voluntary” market Carbon credit trade EU-ETS EU, Japan, Canada, Aus, NZ EUA trade Shortfall CERs / ERUs can also be high quality VERs Surplus Allowances granted Allowances granted Actual emissions Actual emissions EUAs EUAs Site 1 Si
Slide 15: Appendix: Supply and demand to 2012
Appendix: Supply and demand to 2012 The “Compliance” market Supply forecasts to 2012 • CDM – 1.5bn to 1.9bn • JI – 200m to 300m • Plus, AAUs – “hot air” Demand forecast: total demand to 2012…. • EU-ETS: short c200m tonnes per annum • EU governments: short c100m tonnes per annum • Japan: c100m tonnes
Slide 16: Appendix: The carbon market post 2012
Appendix: The carbon market post 2012 A larger, global compliance market • US emissions are c5.8bn tonnes US 8000. 0 Australia p.a. (EU = c2.4bn). 5% carbon 7000. 0 6000. 0 Gap 5000. 0 credit allowance = 300m tonnes 4000. 0 Cap Canada 3000. 0 2000. 0 • Porposed US linkage to both EU 1000. 0 0. 0 201
Slide 17: Appendix: Carbon portfolio information
Appendix: Carbon portfolio information Commercial contract structure Estimated tonnage issuance over time, % Project portfolio by region Project portfolio by technology type, m tonnes All data as at 31 Dec 2007 year end Investor presentation 16
Slide 18: Appendix: Major shareholders
Appendix: Major shareholders Major Shareholders Amount % Holding Tudor BVI Global Portfolio Ltd 23,284,999 13.90 Generation Investment Management LLP 16,000,000 9.55 Clearworld Energy Ltd 13,535,083 8.08 Fidelity Investment Mgrs Ltd 10,216,817 6.10 Greenergy International Ltd 8,449,359 5.04 Dr Josef
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