Etrion Corp. · OTC:ETRXF
Etrion — Investor Presentation (June 2018)
30 slides from Etrion's investor presentation, June 2018
Slide 1: Powered by the Sun
Corporate presentation June 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$0.29 / SEK 2.05 develops, builds, owns and operates ground-based solar photovoltaic (PV) power generation plants Shares Outstanding 334.1M
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: Japan Market
etnon Japan Market 10
Slide 11: 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 12: Building value in Japan
Building value in Japan Example of Leveraged PV Project Value Creation – Undiscounted Cash Flows per 1 MWp Installed over Lifetime in Japan (in USD Million) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Total Cash Flows over 20 years Dev Fee Total CAPEX Total Debt Residual Value Total AMS (20 years) Total Val
Slide 13: Asset Description
etnon Asset Description 13
Slide 14: Our presence
Our presence Shizukuishi – 24MW Misawa – 9.5 MW EPC: Hitachi High-Tech EPC: Hitachi High-Tech Niigata – 45 MW Backlog – Greenfield TK-2 Saitama – 40 MW Backlog – Brownfield TK-4 Komatsu – 13.2 MW Mito – 9.3 MW EPC: Hitachi High-Tech EPC: Hitachi High-Tech Mie – 60 MW Backlog – Brownfield TK-3 Kumamo
Slide 15: 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 16: Shizukuishi – 24.7 MW operational
Shizukuishi – 24.7 MW operational Shizukuishi Utility Tohoko Shizukuishi (MWh) Capacity 24.7 MW 3500 Ownership 87% 3000 Technology Fixed-tilt 2500 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 17: Misawa – 9.5 MW operational
Misawa – 9.5 MW operational Misawa Misawa (MWh) Utility Tohoku 1400 Capacity 9.5 MW 1200 Ownership 60% 1000 Technology Fixed-tilt 800 Module AOU Inverters Hitachi 600 EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,126 kWh/kWp 200 FiT: ¥36/kWh 0 Revenue Stream Term: 20 years Production 10.7 GWh/
Slide 18: Komatsu – 13.2 MW operational
Komatsu – 13.2 MW operational Komatsu (MWh) Komatsu 1600 Utility Hokuriku 1400 1200 Capacity 13.2 MW 1000 Ownership 85% 800 Technology Fixed-tilt 600 400 Module Canadian Solar 200 Inverters Hitachi 0 EPC / O&M Hitachi High-Tech May-18 Jun-18 Irradiation Yield 1,087 kWh/kWp Actual energy produced FiT
Slide 19: Backlog and Pipeline Projects
Backlog and Pipeline Projects 19
Slide 20: 45 MW – Kumamoto prefecture - Brownfield TK-1
45 MW – Kumamoto prefecture - Brownfield TK-1 2017 2018 2019 JAN FEB MAR Q2-18 Q3-18 Q4-18 H1-19 H2-19 PPA Land Negotiations – on hold Forest Development Financial Close PROJECT HIGHLIGHTS Size 45 MWp ETX share 85% Region Nagano Prefecture, Japan Expected: NTP / COD NTP: H2-2019 COD: H1-2021 Revenue
Slide 21: 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 22: 60 MW – Mie prefecture Brownfield TK-3
60 MW – Mie prefecture Brownfield TK-3 2017 2018 2019 DEC JAN FEB MAR APR MAY OCT NOV DEC Q1-19 Q2-19 PPA (Done) Land Acquisition Environmental Impact Assessment EIA Consultation Period Forest Development Financial Close PROJECT HIGHLIGHTS Size 60 MWp ETX share 50% Region Mie Prefecture - Japan Expe
Slide 23: 40 MW – Saitama prefecture Brownfield TK-4
40 MW – Saitama prefecture Brownfield TK-4 2017 2018 2019 DEC JAN FEB MAR APR MAY OCT NOV DEC Q1-19 Q2-19 Land Secured (Done) Environmental Impact Assessment – Under consultation Feasibility Study go/no-go/timing PROJECT HIGHLIGHTS Size 40 MWp ETX share 60% - 100% Region Saitama Prefecture, Japan Ex
Slide 24: Q2-18 Financial Update
etnon Q2-18 Financial Update 24
Slide 25: Financial results
Financial results Etrion Consolidated Results Q2-17(1) Q2-18(2) Q2-18 Segment information 6.5 US$ million Japan Corp TOTAL 5.5 +21% Revenues 6.4 6.4 Operating expenses (1.4) (1.4) 4.5 +24% 3.5 G&A expenses (0.1) (1.2) (1.3) 6.4 Additional termination fee (1.5) (1.5) 5.3 USD million 2.5 4.9 1.5 3.9 E
Slide 26: Financial position
Financial position June 30, 2018 US$ million Japan Corp TOTAL ▪ Etrion has working capital of $29.5 million and a Property, plant and equipment 148.6 0 148.7 consolidated cash position of $66.6 million, of Cash and cash equivalents 15.2 51.5 66.6 which $51.5 million is unrestricted at the corporate
Slide 27: Cash flow statement
Cash flow statement Unrestricted cash movement US$ million Restricted Unrestricted Total 33.4 1.0 50 December 31, 2017 12.8 30.4 43.2 Project level EBITDA 6.6 6.6 Project cash distributions (0.7) 0.6 (0.1) 40 Corporate G&A (1.8) (1.8) Taxes paid (0.1) (0.5) (0.6) Working capital (0.3) (1.0) (1.3) US
Slide 28: Summary
Summary 28
Slide 29: 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 105 MW within the next twelve months • Fully funded for next 12 months • Beyond the 105 MW, potential upside remai
Slide 30: 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 30