Invinity Energy Systems Plc · LSE:IES

Invinity Energy Systems — Camco International — FY2008 Earnings Presentation

24 slides from Invinity Energy Systems's earnings presentation, April 2009

  1. Slide 1: Investor Presentation: Full Year Preliminary Results

    Investor Presentation Full Year Preliminary Results Jeff Kenna, CEO Scott McGregor, CFO April 2009

  2. Slide 2: Important Disclaimer

    Important 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 M

  3. Slide 3: Contents

    Contents 1. Summary 2. Industry update 3. Our business 4. Financial performance 5. Business unit performance - Carbon 6. Business unit performance - Advisory 7. Business unit performance - Investments 8. Outlook Camco – A climate change and sustainable development company 2

  4. Slide 4: Creating value in a low carbon economy

    Creating value in a low carbon economy. Camco – A climate change and sustainable development company 3

  5. Slide 5: 1. Summary

    1. Summary ƒ Maiden profit achieved in 2008 ƒ Acceleration of project registrations with 20.4m tonnes (Risk Adjusted) registered during 2008 (up from 17.8m Risk Adjusted at end of 2007) and 5.2m tonnes (Risk Adjusted) in 2009 YTD ƒ Successful cash generating transactions via ƒ commercialisation of a

  6. Slide 6: 2. Industry Update - Legislative & Target Timeline

    2. Industry Update - Legislative & Target Timeline Global United European United States New Australia Japan Mexico Kingdom Union Zealand Target 26-32 % 20 – 30 % Return to 4-14% 25% Cut? below 1990 below 1990 1990 level below 1990 2020 level level level Target 50% below 80% below 60 – 80% 80% below

  7. Slide 7: 3. Our business – Strategy revisited

    3. Our business – Strategy revisited Camco remains focussed on leadership, leverage, value creation and long term clients ƒ Technical and commercial services ƒ Success fees by way of carbon share and commissions ƒ Investment management fees ƒ Focus on high value ƒ Returns on principal investments ƒ

  8. Slide 8: 3. Our business – Strategy revisited

    3. Our business – Strategy revisited Camco Growth Transition of Camco's business model Value 2009 2010 2011 2012 2013 2014 2015 Investment Advisory Carbon Camco – A climate change and sustainable development company 7

  9. Slide 9: 4. Financial performance – Income statement

    4. Financial performance – Income statement Camco finished 2008 with its maiden profit and a strengthened cash position 12 months to 31-Dec-08 (€m) Carbon Advisory Investments Total1 Revenue 31.3 8.8 2.1 42.2 Gross Margin 2 17.4 7.4 2.1 3 26.9 Operating Costs (9.5) (7.8) (0.9) (18.2) PBT 7.8 (0.4) 1

  10. Slide 10: 4. Financial performance – Accounting

    4. Financial performance – Accounting Camco has refined its approach to accounting for carbon contracts as the industry matures and has moved to fair value accrual based accounting Camco provides services to projects owners and receives cash consideration via commissions or non-cash consideration in

  11. Slide 11: 5. Business unit performance - Carbon

    5. Business unit performance - Carbon Camco continues to grow its portfolio and to move projects through the CDM registration process Risk Risk Change Adjusted Adjusted % Stage 31-Dec-08 31-Mar-09 Dec-Mar Contracted 100.1 100.9 1% Submitted 46.1 46.7 1% Registered 40.4 46.3 15% First verification 16

  12. Slide 12: 5. Business unit performance - Carbon

    5. Business unit performance - Carbon Camco continues to grow its portfolio and to move projects through the CDM registration process 100.9 Camco’s Portfolio Value Basis Status Risked Tonnes1 Carbon Share Sold 4.4 Carbon Unsold2 27.6 Share Cash Share Sold 10.5 Unsold 4.2 VERs Sold 2.7 Unsold 4.0 Cas

  13. Slide 13: 5. Business unit performance - Carbon

    5. Business unit performance - Carbon 65% of the Risk Adjusted CDM portfolio (43.9m) now registered (m tonnes) Risk Adjuted Tonnes Registered per year (cumulative) 100.9 50.0 45.0 5.2 40.0 38.7 35.0 CERs 30.0 25.0 20.0 18.8 15.0 ERUs 10.0 VERs 6.7 5.0 1.0 - Dec-06 Dec-07 Dec-08 Mar-09 Camco – A clim

  14. Slide 14: 5. Business unit performance - Carbon

    5. Business unit performance - Carbon Estimated tonnage issuance over time % 100.9 30.0% 26% 25% 25.0% CERs 20.0% 18% 17% 15.0% 10.0% 8% ERUs 5.0% 2% 3% VERs 6.7 1% 0.0% 2006 2007 2008 2009 2010 2011 2012 2013 Camco – A climate change and sustainable development company 13

  15. Slide 15: 5. Market update - Carbon

    5. Market update - Carbon Camco projects are moving through the process faster. The CDM has matured with several bottlenecks being resolved ƒ CDM Executive Board and registration process ƒ CDM Executive board is resolving resourcing issues, registration delays and inconsistent approaches to validati

  16. Slide 16: 5. Market update – Carbon

    5. Market update – Carbon Camco believes that an average price of €15 per CER remains realistic estimate for the period to 2012 ƒ Camco has a strong cash position to enable optimal selling strategies ƒ The carbon markets are exposed to the downturn impacting the global economy ƒ Prices for CERs have

  17. Slide 17: 5. Market Update - Carbon: CER Price forecasts

    5. Market Update - Carbon CER Price forecasts 70.00 PRICE ESTIMATES 2009 2012 (in € per tonne) AKUR 22 64 60.00 Barcap 9 20.5 Citi 12 25 50.00 Daiwa 8 12 Carbon price €/tonne Deutsche Bank 30 N/A Point Carbon 12 35 40.00 Saga Carbon 10 26 SocGen 17 20 30.00 UBS N/A 35 20.00 Anticipated price range 1

  18. Slide 18: 5. Selling Strategy - Carbon

    5. Selling Strategy - Carbon Camco’s strategy is to sell forward projects after value has been created. Camco strategy is to sell mature projects through structured transactions ƒ Maximise value immediately and over long term ƒ Camco credits have a premium when sold on best efforts basis ƒ Use marke

  19. Slide 19: 6. Business unit performance - Advisory

    6. Business unit performance - Advisory The Advisory business continues to access new revenue streams in difficult market conditions ƒ Advisory business delivered revenues of €8.8m and gross margin of €7.4m, with loss of €0.4m in 2008 ƒ Advisory business covers ~1/3 of total company operating costs

  20. Slide 20: 6. Business unit performance - Advisory

    6. Business unit performance - Advisory Camco’s Advisory helps client reduce costs and emissions Advisory breakdown of gross margin (year to 31 December 2008) Footprinting 14% Industrial energy efficiency 16% Carbon management 18% Low carbon buildings 25% Policy/planning 11% Due diligence 11% Projec

  21. Slide 21: 7. Business unit performance – Investments

    7. Business unit performance – Investments The Investments business made of profit of €1.2m in 2008 ƒ The Investments business is core to Camco’s strategy ƒ Growing need to identify quality projects, deploy and manage capital as part of Carbon business ƒ Sector focus to match Camco’s expertise and e

  22. Slide 22: 8. Outlook – Cost savings

    8. Outlook – Cost savings During 2009 Camco is reducing costs to protect its cash position Cost saving initiatives are being implemented to reduce costs across all regions Camco operates ƒ Full cost allocation of group overhead ƒ Advisory cost reduced to achieve profitability ƒ Carbon in non core co

  23. Slide 23: 8. Outlook - 2009

    8. Outlook - 2009 Camco is positioned with a strong platform and cash position for 2009 ƒ Carbon 2009 deliveries will provide recurring, sustainable cash flows from the portfolio ƒ Complete transactions at optimal time to maximise value from volatility ƒ Use opportunities for business development pr

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Camco International — FY2008 Earnings Presentation on 6ix