Slide 1: 2020 First Quarter Operations and Finance Update
2020 First Quarter Operations and Finance Update May 11th 2020 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: Etrion Corporation Company Overview and Financial Summary
Etrion Corporation Company Overview Financial Summary FINANCIAL SUMMARY • Solar development platform focused in Japan, among the Recent Share Price (TSX/OMX: ETX) (1) (2) C$0.24 / SEK 1.48 top 5 largest energy markets in the world Shares Outstanding (3) 334.1MM • 11 solar plants operational and 1 un
Slide 4: Japan – Solar position in the world and growth perspectives
Japan – Solar position in the world and growth perspectives Figure 2: Japan solar PV market growth scenario 2019-2026 (GW) Source: JPEA Figure 1: Cumulative solar PV Capacity Globally as of 2018 Source: REN21 Figure 4: Electricity Generation by Fuel in Japan in 2030 Figure 3: Electricity Generation
Slide 5: Our focus is Japan
Our focus is Japan 1 Among top 5 largest energy markets in the world 2 Solar supported by a Feed-in-Tariff program 3 Among highest electricity prices in OECD 4 Strategic partnerships 5 Low cost financing 6 Energy sector deregulated in 2016 7 Strong institutional demand for yield • In April 2020, Etr
Slide 6: Operational Update
Operational Update 6
Slide 7: Company snapshot
Company snapshot • Etrion has demonstrated to have a resilient solar platform in Japan, operating without interruption during the global pandemic. Our solar plants continue to deliver predictable revenues and EBITDA with strong positive results. • The company maintains its full year guidance for 202
Slide 8: Our presence
Our presence Misawa – 9.5MW EPC: Hitachi High-Tech Shizukuishi – 24.7MW EPC: Hitachi High-Tech Niigata – 45 MW Under Construction Mito – 9.3 MW Komatsu – 13.2 MW EPC: Hitachi High-Tech EPC: Hitachi High-Tech Operating Under Construction Backlog Mie – 60MW Backlog 8 www.etrion.com | TSX: ETX
Slide 9: Full year operational performance of operating assets
Full year operational performance of operating assets MITO Production (MWh) MISAWA Production (MWh) 1500 1500 1000 1000 500 500 0 0 Expected Actual Expected Actual Shizukuishi Production (MWh) Komatsu Production (MWh) 4000 2000 3500 3000 1500 2500 2000 1000 1500 1000 500 500 0 0 Expected Actual Expe
Slide 10: Niigata
Niigata
Slide 11: Niigata – 45 MW
Niigata – 45 MW Key project metrics Ownership 100% ETX Capacity 45 MW Region / Utility Tohoku PPA Price ¥36/kWh - FiT until March 2040 Irradiation 1,050 kWh/kWp Total Capex US$ 154.2M BBB Green Project Bond, US$ Finance Structure 146.5M (JPY 15.9 billion) Debt tenor Construction period plus 16.8 yea
Slide 12: Niigata Project Timeline
NIIGATA PROJECT TIMELINE (Planned = Actual; 42% WIP) 2019 2020 2021 MAR APR MAY JUN JUL AUG SEP --- --- --- JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Pre-Construction Land Development ✓ METI Approval for Mounting Structures & Modules the design & schedule were Elect
Slide 13: Sites Construction photos (Mar 2020)
Sites Construction photos（ Mar 2020 ） 1 4 2 3 5 1 6 2 www.etrion.com | TSX: ETX
Slide 14: Sites Construction photos
Sites Construction photos 3 4 5 6 www.etrion.com | TSX: ETX
Slide 15: Business Development Update
Business Development Update 15
Slide 16: Growth Opportunity
Growth Opportunity • MIE 60 MW Project. – Etrion has a development agreement in place with local developer. Terms of agreement outlines responsibility of the parties to develop the project. Under this contract, Etrion to take 100% ownership once project reaches ready to build status – Etrion commenc
Slide 17: Financial results
Financial results 17
Slide 18: Q1-20 highlights
Q1-20 highlights Q1-20 Highlights US$ million otherwise indicated Q1-20 Q1-19 ▪ 45 MW Niigata project 42% completed 3-m 3-m end Q1-20 Production KWh million 12.5 12.3 ▪ Cash balance of US$108.8 million Revenue 4.3 4.2 (US$9.7 million unrestricted) Project-EBITDA 3.2 2.6 ▪ Mito increased the size of
Slide 19: Financial results
Financial results Etrion consolidated results Q1-20 Segment information US$ millions Japan Corp TOTAL Revenues 4.3 - 4.3 Operating expenses (1.1) - (1.1) G&A expenses (0.1) (1.2) (1.3) Other income 0.0 (0.5) (0.5) EBITDA 3.1 (1.7) 1.5 Depreciation and amortization (2.3) (0.0) (2.3) Net finance costs
Slide 20: Financial position
Financial position Consolidated Balance Sheet March 31, 2020 ▪ Etrion has a working capital of $91.4 US$ millions Japan Corp TOTAL million and a consolidated cash position Property, plant and equipment 205.3 0.1 205.4 of $108.8 million, of which $9.7 million is Intangible assets 12.2 2.6 14.8 unrest
Slide 21: Cash and liquidity
Cash and liquidity Unrestricted cash reconciliation 16 3.2 2.2 14 12 0.4 1.5 10 US$ millions 10.6 9.7 8 6 4 2 - Dec-19 JPN distributions Operating CF Dev Costs Taxes Mar-20 Unrestricted cash Decrease Increase 21 www.etrion.com | TSX: ETX
Slide 22: Summary
Summary 22
Slide 23: Summary
Summary • Etrion well positioned for continued growth in one of the largest solar markets in the world • Strong 2019 financial performance in all key operating metrics demonstrating excellent execution in all operational activities • Restructuring in 2019 increased net operational capacity by 22%, i
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