Etrion Corp. · OTC:ETRXF
Etrion — Investor Presentation (March 2018)
31 slides from Etrion's investor presentation, March 2018
Slide 1: Powered by the Sun
Corporate Presentation March 2018 Powered by the Sun Developing, building and operating solar power generation plants 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$0.30 / SEK 1.96 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 Total CAPEX Total Debt Dev Fee Total AMS (20 years) Residual Value 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 Komatsu – 13.2 MW Saitama – 40 MW EPC: Hitachi High-Tech Backlog – Brownfield TK-4 Komatsu – 13.2 MW Mito – 9.3 MW Kumamoto – 45 MW EPC: Backlog –Hitachi High-Tech
Slide 15: Mito – 9.3 MW operational
Mito – 9.3 MW operational Mito MITO comparison (MWh) Utility Tepco 1400 Capacity 9.3 MW 1200 Ownership 87% 1000 Technology Fixed-tilt 800 Module Canadian Solar Inverters Hitachi 600 EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,120 kWh/kWp 200 FiT: ¥40/kWh Revenue Stream 0 Term: 20 years Produ
Slide 16: Shizukuishi – 24.7 MW operational
Shizukuishi – 24.7 MW operational Shizukuishi Shizukuishi comparison (MWh) Utility Tohuko 4000 Capacity 24.7 MW 3500 Ownership 87% 3000 Technology Fixed-tilt 2500 Module Canadian Solar 2000 Inverters Hitachi 1500 EPC / O&M Hitachi High-Tech 1000 Irradiation Yield 1,088 kWh/kWp 500 FiT: ¥40/kWh Reven
Slide 17: Misawa – 9.5 MW operational
Misawa – 9.5 MW operational Misawa MISAWA comparison (MWh) Utility Tohoku 1200 Capacity 9.5 MW 1000 Ownership 60% Technology Fixed-tilt 800 Module AOU Inverters Hitachi 600 EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,126 kWh/kWp FiT: ¥36/kWh 200 Revenue Stream Term: 20 years 0 Production 10.
Slide 18: Komatsu – 13.2 MW under construction
Komatsu – 13.2 MW under construction November 2016 Q1-2017 Q3&Q4-2017 April 2018 July 2018 EPC contract Land preparation Completion of PV modules, Plant completion Plant delivery. signed. completed. Fencing and Inverters and substation. and commissioning. temporary offices. Currently @ circa 50% tot
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 Q1-19 Q2-19 PPA Land Negotiations Forest Development Financial Close PROJECT HIGHLIGHTS Size 45 MWp ETX share 85% Region Nagano Prefecture, Japan Expected: NTP / COD NTP: H1-2019 COD: H1-2021 Revenue FIT: ¥36/
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 85- 100% Region Niigata Prefecture - Japan Expected: NTP / COD
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/nogo/timing PROJECT HIGHLIGHTS Size 40 MWp ETX share 60% - 100% Region Saitama Prefecture, Japan Exp
Slide 24: 2017 Financial Update
etnon 2017 Financial Update 24
Slide 25: Financial results
Financial results Etrion Consolidated Results • Revenues and project-level EBITDA increased significantly relative to 2016 due to positive operating performance 25.0 and additional production in Japan. 20.0 +43% • In 2017 electricity production in Japan increased 287% year-over-year as a result of t
Slide 26: Financial position
Financial position December 31, 2017 US$ million Japan Corp TOTAL 200.0 Property, plant and equipment 140.6 0 140.6 Intangible assets 5.3 4.4 9.7 Cash and cash equivalents 12.8 30.4 43.2 150.0 Other assets 8.6 9.9 18.5 USD million Total assets 167.3 44.7 212.0 Borrowings 139.0 40.7 179.7 100.0 Trade
Slide 27: Cash flow statement
Cash flow statement Unrestricted cash movement 55 US$ million Restricted Unrestricted Total 50 December 31, 2016 18.9 42.3 61.2 45 7.7 9.5 Project level EBITDA 12.5 12.5 Project cash distributions (8.9) 7.7 (1.2) 2.0 1.5 USD millions 40 Corporate G&A (7.7) (7.7) 3.1 Taxes paid (0.3) (0.7) (1.0) 35 K
Slide 28: 2018 guidance
2018 guidance Net to Etrion’s interest Low end High end USD million otherwise stated guidance guidance Energy generation (MWh) 37,517 41,466 Revenue 12.9 14.3 Project-level EBITDA 8.7 9.6 • Japanese production, revenue and project-level EBITDA in 2018 is based on the 57 MW assets in operations or cu
Slide 29: Summary
Summary 29
Slide 30: Well positioned for growth
Well positioned for growth • Significant project cash distributions in 2017 and corporate debt reduction strengthening Etrion’s financial position, with sufficient liquidity to fund our backlog projects • Strong growth potential with target to reach NTP between 100 – 150 MW within the next 18 months
Slide 31: 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 clacueva@etrion.com www.etrion.co