Invinity Energy Systems Plc · LSE:IES
Invinity Energy Systems — Camco International — Investor Presentation (September 2011)
23 slides from Invinity Energy Systems's investor presentation, September 2011
Slide 1: Investor Presentation
Investor Presentation Scott McGregor, CEO September 2011
Slide 2: Important Disclaimer
Important Disclaimer This presentation (the “Presentation Materials”) is being made only to and is directed at: (a) persons outside the United Kingdom; (b) persons having professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act
Slide 3: Overview
Overview About Camco Core capabilities are to reduce emissions and develop clean energy projects 20 years experience in clean energy project development Focused on Asia and North America, where are market leaders in our sectors Delivering emission reductions and cash over the last three years, rates
Slide 4: What we do
What we do Camco involved in all key parts of the project Camco Advisory Emissions Revenues Steel Camco Carbon Carbon Credits Waste heat to energy Electricity Camco Projects Camco – Transforming Emissions to Energy and Policy to Business Action 3
Slide 5: Our Activities
Our Activities Three connected business activities Camco Carbon Camco Projects Camco Advisory • Revenues €11.6m (HY11) • Revenues €0.5m (HY11) • Revenues €4.2m (HY11) • Focused on North America & • Global portfolio in China, Asia • Double-digit margins SEAsia, Russia, Africa & USA • In 2010 raised $
Slide 6: Value building blocks
Value building blocks Multiple building blocks with hidden value Carbon • Credits to deliver: 26.6m tonnes Camco (Pre 2012) • Average buy price per credit: €8.6 Market Cap: £27.20m • Forward market price*: €11.00 • Credits to deliver: 41.5m tonnes # of Shares: 189,178,093 Carbon (2013-20) • Forward
Slide 7: Carbon
Carbon Expertise in delivery and commercialisation of carbon emissions • Camco develops bespoke carbon reductions programmes for large emitters: – Designs – Registers Delivery – Monitors – Issuance – Monetises Commercialisation • Currently Camco has > 300 projects, which represent circa 250m tonnes
Slide 8: Carbon
Carbon Operational Highlights for H1 /2011 • Largest renewable carbon development agreement signed for 20 wind projects in China • Increasing post 2012 portfolio by 14% • Forward sale transactions locking in prices for 1.5 million carbon credits Camco – Transforming Emissions to Energy and Policy to
Slide 9: Carbon Credits
Carbon Credits CarbonAcceleration Credits frominCamco’s issuance Projects Camco “in specie” and “revenue” share credits Credits issued from projects Camco develops 2008 - 2012 Predicted Total tonnes (m)* Predicted tonnes* In Specie delivered 9.0 or title sold 26.6 In Specie to deliver 17.61 and titl
Slide 10: Project Development
Project Development Growing asset ownership • Build, own and operate emissions to energy projects, capitalising on proprietary knowledge and expertise in project development • Two distinct target markets of Methane to Energy and Industrial Energy & Efficiency • Targeting return on projects of 20%+ •
Slide 11: Clean Energy Market Focus: USA (1)
Clean Energy Market Focus: USA (1) Favorable market- pole position Market Size • Agriculture emissions 7.8% of total US emissions • Potential energy generation from dairy biogas - 8GW Favourable Regulatory Environment • USDA aiming to have one digester built per week • California emissions target fr
Slide 12: Clean Energy Market Focus: USA (2)
Clean Energy Market Focus: USA (2) Revenue sources identified • Investment Tax Credit – up to 30% of construction costs are reimbursed* qualification deadline ends 31 Dec 2011 to spend 5% of projects costs • Local state feed-in-tariff • Projects are eligible for Renewable Energy Certificates - curre
Slide 13: Project Development
Project Development Development business model <5% 15-50% Low Risk Approach • Using proven equipment • Quick to deploy • Replicable projects • Counterparties with strong credit ratings • Secure supply contracts • Long term off-take (PPA) agreements • 20% IRR project return Camco – Transforming Emiss
Slide 14: Project Development
Project Development Highlights for H1/2011 Financial close and start of construction of largest dairy biogas project in North America • installation of anaerobic digesters to convert cow manure into enough biogas to fuel 4.5MW of generation capacity • fully financed for an estimated total project co
Slide 15: Advisory
Advisory Profitable business • Consultancy business split into areas of expertise: 1. Policy work with governments, NGOs and international organisations 2. Industrial Energy Efficiency programmes 3. Carbon management 4. Advising property developers on building zero/low carbon developments 5. Energy
Slide 16: Revenue Sources
Revenue Sources Strategic outlook 2011 2012 2013 2014+ €m €m €m €m Camco Carbon Pre 2012 Projects becoming operational * ++ ++ Post 2012 Projects becoming CDM operational ** + ++ ++ ++ Camco Projects Clean Energy Projects operational *** + ++ +++ Camco Advisory Energy and Carbon Advisory + + + + * C
Slide 17: Where we are going
Where we are going Clear focus Carbon Project Clean Energy Project Energy and Carbon Development Development Advisory 2010 Deliver Originate Turnaround 2011 Deliver Invest Recurring Revenue Growth 2012+ Deliver Grow Recurring Revenue Growth Deliver: Invest: Recurring Revenue Growth: 2011 • Tonnes •
Slide 18: Profit & Loss Account
Profit & Loss Account HY 2011 FY 2010 FY 2009 €m €m €m Revenue 16.2 30.0 27.8 Gross Profit 11.7 20.6 20.7 Gross Margin 72% 69% 74% Administrative expenses (8.6) (17.8) (18.9) Other income/(expense) 0.0 6.8 (0.6) * PBT 3.1 9.6 1.2 * ) * With goodwill write-down added back Camco – Transforming Emissio
Slide 19: Outlook
Outlook Favorable regulatory environment Increase in clarity on eligibility for carbon credits being sold into the Market EU European Trading Scheme post 2012. Significant movement on regulatory systems in North America and Australia, Japan The Clean Energy projects business will continue its develo
Slide 20: An award-winning business
An award-winning business • Best Project Developer, Environmental Finance - 2010 • Renewable Energy company of the year, Commodities Business Awards - 2010 • Transaction of the Year, Carbon Finance – 2009 • Best Project Developer, Point Carbon – 2007, 2008, 2009 • 7th Best Workplaces in the UK, Grea
Slide 21: Management Team
Management Team Experienced global management team (staff of 200 people globally) Scott McGregor Yariv Cohen Andrew Twynam Chief Executive Officer President Finance Director • Managed Camco’s IPO in 2006 • Led and transformed Camco's 3 business units • Managed Camco’s finance operations since • Led
Slide 22: Ownership Structure
Ownership Structure Diverse international share holder base Henderson Global Investors 5% Khazanah Nasional Berhad - Sovereign wealth fund 24% Free float 34% 13% Tudor Investment Corporation 7% 12% 5% Founders & Directors Camco – Transforming Emissions to Energy and Policy to Business Action 21
Slide 23: Camco
Camco Camco – Transforming Emissions to Energy and Policy to Business Action 22
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